What if I have a poor credit rating?

Having bad credit history does not mean that you cannot get a secured loan. It simply means that the rate of APR available to you will be less competitive than others on the market.

A poor credit history means that in lenders eyes you are more of a risk. A secured loan will dramatically improve your chances of getting a more competitive rate as the lender will have the added security of your property to secure the loan against in case of late payment.

Common factors that can result in having a bad credit history include:

• Anytime you make a late payment
• Miss a payment
• Default on a debit payment
• Failing to fulfil any other form of financial commitment

Your credit history is produced from reports that have been passed on to credit agencies. They will have access to information regarding any late or missed payments.

Other factors that can cause a red flag against your name include frequent change of job or address and any CCJ’s (County Court Judgements) taken out against you.

The good news is you are not stuck with bad credit history for life. By making regular payments and making sure you do not fall behind with any financial commitments you have your credit rating will slowly be regained to a good standard.

Go Back to the main Secured Loans FAQ page