Poor Credit LoansFind out more about your Loan options

In recent years, the credit crunch has led to a tightening up of lending criteria, meaning that many providers that lent irresponsibly, i.e. by providing poor credit loans to those unable to pay them back, are no longer operating in the market. However, you should still be wary of any lender that offers sky-high interest rates on poor credit loans, because this will make it much harder to get back out of debt again. Minimum payments, whether on personal poor credit loans or on credit card debt, prolong your debt almost indefinitely, because you are usually only paying off the interest rate on the loan. Rather than relying on minimum payments, you should look for poor credit loan deals that actively encourage you to clear your debt. More info

Reasons for having your options limited to poor credit loans include having a county court judgment (CCJ) filed against you for failure to pay your debts, being on a debt management programme or having an IVA (individual voluntary agreement) with creditors to pay back money that you owe. Something important to remember is that although a history of repaid debt actually works in your favour when applying for poor credit loans, multiple loans and loan applications will work against you. Every time an application is made, the loan provider needs to check your credit history and this check is logged so that future providers can see it. Most lenders are looking to lend to people that are usually able to manage their finances properly, and yet have a temporary need for credit. Loan providers that seek out consumers with debt problems are often unscrupulous, so speak to an independent advisor before signing up to a loan if you have concerns. Less