Even though you may well have a bad credit rating this doesn’t mean that it’s impossible to get yourself a loan. There are dissimilarities in lending money when your credit rating isn’t good, the main alteration is that it will cost you more. This is due to the fact you are looked upon as a higher risk to the lenders than someone with a good credit rating. You end up paying more as the APR upon the loan is likely to be higher than it would be if you had a good credit rating.

Despite these rates being higher they are still vastly lower than pay day loan options, also they give you the opportunity if you wish to repay the loan over a few years rather than the high APR rates and short term payment dates that the pay day loan companies offer. There is both the option of a secured and unsecured loan for someone who has a bad credit rating of CCJ’s.

A secured loan is a loan that requires you to be a homeowner and the loan is then secured against your property. This provides the lender with the safety of the value of your property, this is a backup in case you are unsuccessful in maintaining the repayments, they are then in the position to repossess your property.

The unsecured option means that you aren’t required to be a homeowner but that you may need a guarantor to ensure payment is met, they must be able to step in and pay if you fail to keep up with the repayments that are required. It will then become their responsibility as well as yours to repay the loan amount.

In the majority of cases you will need to be in full time employment and be earning a certain amount before the poor credit lenders will consider you for a loan. Make sure you only borrow what you require. The lower the amount and the shorter the term the less you end up paying back. Shop around for the most competitive rates and ensure that you will be in a financial position that allows you to meet the repayments throughout the loan period. Take your time to go through all of the terms and conditions make sure that these suit you. Furthermore ensure that you are aware of what will happen if you are unable to keep up with the loan repayments.

Ceri Harris is an underwriter at Willows Finance LTD a secured loans company based in Wales.