Bad credit is no longer something you need to be ashamed of. There was a time when you would have preferred that no-one knew about your finances. There was a shame and a stigma attached to being unable to repay borrowed money.
But times have changed and people have moved on. You will know of people with large salaries who get into financial trouble for one reason or another. Missing a few repayment deadlines is not just a thing for those of us on more ordinary incomes. In fact, today you can openly discuss your history of bad credit with lenders, and often even with work colleagues and friends.
New loans are possible
And here's some good news - bad credit is not a disqualification for getting another loan.
You can find the loans you'll need to increase the comfort and value of your home with improvements like a new bathroom or refitted kitchen. You can own the car you've dreamed about, pay for that elaborate wedding for your daughter, take that extended holiday break you deserve or pay for cosmetic surgery.
If you have some difficulties in the past with repaying loans, and have a history that is less than perfect, you can still get a loan. It will be called something different - a bad credit loan. But in many respects the procedure for getting one will be the same as it is for your neighbour or work colleague who have a good record of loan repayments. It's true that getting a mortgage with a history of bad credit may take some time. It will not be the easiest or fastest loan out there. But it is a fact that you can buy a home even if you have bad credit. Many thousands of people do this, right here in the UK.
Fees and interest on loans
Of course there is the rate of interest and lender fees to consider when looking around for your bad credit loan. When you borrow money you will pay back more than the amount you borrowed, as you know. You will also have to pay interest on the loan. The rates and fees will be different between lenders. So you need to look around. But some more good news is - these rates and charges will be affordable and as long as you can assure the lender you will meet the repayment schedule, you have a very good chance of getting your loan, even if you have a history of credit difficulties.
Lenders appreciate that there are large numbers of potential customers who need loans and have some security they can put up to give the lender certainty about his money. These lenders are more willing than ever to make loans on the basis of the security you have, with your bad credit record as just one factor they consider. The high street lending business is much more competitive these days lenders are now more willing than ever to advance loans people who have a history of bad credit. As long as their current capacity to repay passes the test.
Security is a biggest guarantor to a lender. It gives him the access to your asset if, in the unlikely event of your defaulting on your loan, you break your repayment agreement. So, if you have some security like a home, a modern vehicle or boat, expensive jewellery, you should start talking to a reputable financial business about taking a loan.
Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk