Helping Yourself Out Of That Bad Credit Hole

A look at methods of getting finance if you have a bad credit history and some of the options open to you.

Helping Yourself Out Of That Bad Credit Hole

Everyone makes mistakes. Unfortunately if that mistake relates to the non-payment of a loan installment it can have dire consequences. Once you have failed to meet a group of loan repayments then you are asked to bring the arrangement up to date. If you fail to do this you will get a letter from the lender warning you that should you fail to meet their demands you will be placed on a bad credit list. At the time you may think nothing of it; until that time in the future where you desperately need to raise money and find that no-one is prepared to help you because of your poor credit rating.

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Of course in a perfect world no one would have bad credit, in fact we would not be needing to borrow money at all, but our modern world is far from perfect and most of us struggle to get by without loans and credit cards to help us from time to time. All is not lost, however, as there are ways and means of helping yourself back into the good credit books. One option is of course to clear all your debts and stay debt free for a period of time; the other is to find a willing lender and make regular payments thereby improving your credit record. There are credit cards designed for people with bad credit with the aim of rebuilding that credit as long as you stay within the limit and make regular repayments. Unfortunately even these are not available to those with a really bad record.

Finding Help

There are companies on the market who do offer a loan for bad credit history applicants. The downside with these is they normally carry a very large APR and you will be repaying far, far more than you borrow. Another option is the guarantor loan. This method does not involve a credit check but will involve a friend or family member giving out their details to the lending company: in short if you do not repay they will have to. Whilst this sounds simple enough not many people can afford to risk their own homes and income these days even for their nearest and dearest.

Using Your Assets

If you have a car then one of the better options for an instant loan for bad credit history is the so called log book loan. What happens here is that you hand over your vehicle documents for loaned money in return. Once the loan is repaid you have the documents back. The value of the vehicle is assessed by the company and there will normally be a local branch for you to deal with. The company will never loan you the full value of your vehicle and the vehicle has to be over a certain age to qualify, so whilst a good short term solution it may not be open to all applicants.

AUTHOR BIO
This look at loans for bad credit history applicants and the ways of getting an instant loan for bad credit history sufferers was written by Ilena Sanchez a regular contributor to financial magazines .