Sourcing loans for people with bad credit

Since the credit crunch lending criteria has changed and has become far more traditional. In simple terms lenders what to know if you can afford to repay, and what assets you can offer as security. If you are a private tenant who cannot prove his or her income you are unlikely to get much money from a lender unless you have a very good credit history.

Mortgages do still exist, but with vastly reduced loan to values. The vast majority of secured loan lenders have exited the marketplace through fear of house prices going down even further. What is the point in having a charge on a home if the equity that was lent against 2 years ago has now disappeared; the first charge lender is unlikely to want to repossess the property if they have been paid on time each month.

So, if you want a short term loan there are many lenders with very high interest rates sometimes approaching 2000% APR, but you want to try and avoid them.

There are still companies that are willing to give car finance to people with good credit scores, if you have a nice big deposit to put down, but bad credit car finance has got much more difficult to find and the finance companies do a lot of due diligence on you and your credit history.