Help Desk

Loan Guide

TIME was when we had little choice if we needed to arrange a loan. The first port of call was typically the High Street bank, or local building or friendly society. We would then have to rely upon the benevolence of the manager - and of course a decent credit record showing that we were a good risk when it came to repaying money borrowed.

Secured loans are one of the best ways to obtain large amounts of money quickly. They're backed by personal property, usually a home and are therefore available to homeowners, with lenders offering the loan on a secured basis against the property.

Loan Security

Loan Security Secured loans are typically easier to obtain than an unsecured loan because of the collateral involved. Collateral does come in various forms but the most common is your home, or other property you own.

Loans secured against property that is already mortgaged are known as second charges, where as loans secured against a property owned outright with no existing mortgage in place is known as a first charge. Loans are available for almost any purpose including debt consolidation, home improvements, holidays and car purchases.

Credit Scoring

Lenders frequently use credit scoring facilities and credit reference agencies to assess your suitability. If you are refused a loan or wish to make inquiries concerning your own credit file you can apply to the credit reference agencies for a copy of your credit file.

Credit reference agencies provide a detailed analysis of your financial position as they hold information relating to your credit history, any adverse credit and any existing commitments. They will look at your past credit history and take into consideration any adverse credit such as mortgage arrears, defaults or county court judgments.

Bad Credit doesn't mean you can't get a loan.

Bad Credit

Loans are available at reasonable rates even with a bad credit history, which means that you can enjoy lower repayment terms even if your have a tarnished credit history. CCJs and bad credit history need not be a problem when applying. Many Lenders are sympathetic to personal loan requirements whatever they may be, good or bad credit history, employed or self employed.

It's a competitive market and Lenders need to stay in business, so they're open to considering a broader spectrum of personal circumstances.