01 Mar That are bad credit loans for? You’ll likely have credit that is low or damaged credit report if you’ve:
- Formerly missed loan repayments
- Formerly missed household bill re re payments or phone that is mobile broadband contracts bills
- Defaulted on a merchant account
- Been bankrupt when you look at the last
Loan providers will run credit checks you loan offers or approving your application on you before issuing. You may want to see what your credit score is yourself, to get an idea of the type of loan product you’ll be eligible for before you apply for loans.
What is a credit score that is good? There wasn’t one universal credit history within the UK, but rather three credit reporting agencies which issue independent scores, on various scales.
These ratings are going to be according to your previous borrowing, payment history, your available credit, along with other information that is personal.
- Experian: issues fico scores between 0 and 999, and such a thing below 560 is recognized as bad.
- Equifax: dilemmas fico scores of between 0 and 700. The united kingdom average is 389 and any rating below 279 is known as inadequate.
- Callcredit: issues fico scores between 0 and 710. A rating below 550 is known as inadequate.
Bad credit loans may also be a choice for folks who credit that is little, specially young adults that have never ever borrowed before.
To get a bad credit loan, you’ll need certainly to be at the very least 18 years old as well as in work.
You won’t qualify for a bad credit loan if:
- You have got a working county court judgement (CCJ) for financial obligation against you
- You’re still within an voluntary that is individual (IVA) with loan providers
- You have got yet become released from bankruptcy
Forms of bad credit loan: there are many sub-types of bad credit loans available: