Doorstep Loans For Bad Credit

The High UK Demand For Doorstep Loans And Bad Credit Loans 

Doorstep Loans For Bad CreditThe demand for doorstep loans is on the increase in the UK mainly because increasing numbers of individuals are finding it harder and harder to keep a good credit rating and hence to maintain the trust and willingness of lenders to lend. Whilst we all know what bad credit history is do we actually understand just what issues can cause or affect it and why the popularity of doorstep loans for bad credit?

Apply for any type of credit and the lender will automatically turn to your credit file and examine your financial past to make sure you can be trusted to repay your debts. If your file proves you to be responsible the there should be no problem but if it throws up questions and past issues your application may not be approved or you could be subjected to inferior lending terms. More info here.

And, when we say “credit” we don’t just mean those secured or unsecured loans, the mortgage and credit cards. Did you realise that paying the council tax, water rates and other utility bills are also credit agreements as are the mobile phone contracts, those store cards, monthly paid insurance policies and much more.

One thing’s for definite, if you’ve been subject to any big credit or debt problems in the past, things like bankruptcy, insolvency, debt management, IVAs, court orders or judgements, then your file is not going to look good at all and will be the subject of questions. Such major issues showing on your file may well result in any future credit application being declined or only accepted under special terms or conditions.

  

Another main consideration is debt, not just current debt but also past debt even if it’s been cleared. If you have had a problem with debt in times gone by and had to turn to one of the many types of debt management programs or solutions and even if you’ve cleared your debts as a result of this the records will still be kept on your file and act against any future credit application as it will be considered as you not being able to stick to previous credit agreements. In fact, some of the official debt solutions will stay on your records for 6 whole years. This is also the case if you’ve ever reached agreement with any creditor that has resulted in any part of your debts being written off – the facts are there for all to see on your credit file. Present debt levels are also taken into account, even if you’re adgering to all credit agreements if your debt levels are high in proportion to earnings, if credit cards are maxed and only minimum payments are being made then any potential lender will think twice before lending more.

Just how reliable and consistent you’ve been in making credit repayments on time and in full is another factor that’s taken into account. OK, the majority of us have been late with the odd payment and, whilst this will be registered, it shouldn’t have too much influence but be late time after taime and your credit score will be dramatically reduced. Even more of a problem is if you’ve actually missed payments entirely as this will really flag up an alert.

Finally, be careful how much you apply for credit. Every application you make is recorded in the form of a footprint on your file. If your application is not approved it will be visible the next time you make a credit application and if that’s also rejected you’re into the downward spiral of rejection which is not a good place to be as you may be seen as desperate for credit which will make any potential lender nervy.

Don’t take it as a certainty that all the information help on your credit file is accurate, mistakes are made and it’s important you spot and rectify them. Don’t ignore any previous problems either, instead start to rebuild that poor credit history and do your utmost to keep a perfect credit rating in the future, that way you’ll not have to turn to the bad credit loans market for any future credit.

Whilst most doorstep loans providers will look at the applicants credit history they will usually make a decision based on the persons ability to afford and repay the loan moving forward. This means that a bad credit history, arrears, defaults, CCJs etc may not automatically result in a rejected application and that’s why the doorstep loan is so popular when it comes to bad credit.

Also a good read is the section on doorstep loans no credit checks that you’ll find at MoneyUnmuddled.co.uk


Leave a Reply

You must be logged in to post a comment.