There could be a number of reasons why you have bad credit. It can be frustrating when you’re trying to borrow money for a loan such as a car loan, a personal loan or even home loan. Don’t panic – it is possible to borrow money with bad credit so be patient and do you research.
What do you need to borrow?
Think about this really carefully. Work out exactly how much you really need to borrow – never stretching yourself financially and only borrowing what you can pay back.When you know the amount that you need to borrow, you can speak with lenders who specialise in working with people with bad credit to find out whether they will approve you for a loan.
How much can you borrow with bad credit?
This will depend on a number of factors. The individual lenders may have different criteria and different amounts that they’re willing to approve you for.The amount that you can borrow with bad credit will also depend on what you are borrowing the money for. Whether it’s a car loan or a personal loan, having bad credit means you’ll have to work harder with your loan application and find the right bad credit lending specialist for you. How much you can borrow with bad credit also depends on your individual credit score and what the reasons are for your bad credit history. Lenders who specialise in working with people with bad credit will generally listen to your situation and figure out how much you can borrow with bad credit.
What can you do to help yourself if you have bad credit?
You could think about timing your application for a loan for when your credit rating is at the highest that it can be. If you have recently been discharged from bankruptcy, you’ll have less chance of getting approved for bad credit loan than if you’ve improved your credit score by being in regular employment for the last 6 months.It might be possible that you’re able to put down a larger deposit. This will help you to borrow more with bad credit as it will mean you are lower risk to the lender. As you’ll be borrowing less money, you’ll also end up paying less interest and fees over the course of the loan, which will save you money.
If you have bad credit, it’s really important that you do everything you can do to improve your credit rating. If you’re taking out a new loan, make sure you’re organised about paying it back on time and never missing a repayment. Set reminders in your calendar or set up a direct debit so that you never default on your loan – which could damage your potential for borrowing in the future.