A bad credit history can do a lot of damage to your credit score and without a good credit score you are going to find that it is difficult to get credit for just about anything. The lower your credit score, the harder it is to qualify for a loan for things like a car or mortgage. When you apply for credit, the lender is going to run a credit check. A credit check lets them know if you are financially responsible. It lets them know if you are in default on a loan or of you are bankrupt. If your credit score is lower than what they would like to see, you are not going to get the loan. With a bad credit history, what options are available to you as far as loans go? With a low credit score hanging around, you might want to consider applying for a loan that does not require a credit check.
Certain companies will loan you money without doing a credit check or without even considering your bad credit history. The problem with these loans, however, is that they tend to have interest rates, often times higher than the average. With a low credit score, you don’t have many options so you may have to deal with a high APR until your credit score increases. Just make sure that if you get a loan, you make all of your payments on time. Pay weekly if they offer a weekly pay service. No credit check loans are very popular in Durham and the rest of the UK.
Often times, companies that give out no-credit check loans, will allow you to make payments online with your debit card. If you don’t have a debit card, you might want to use direct debit. Direct debit is a sure way to pay your loan back without missing a payment. With direct debit, the lender simply draws from your account, the money due each week or month, and you don’t have to do a thing. Direct debit really is a fast and convenient way to make your payments.
So what can you use a no-credit check loan for? You can use them to furnish a new home, for example. You can use the loan money to buy furniture like sofas, TV stands and television accessories. You can even use them to buy small things like Blue Ray DVD players, Playstation 3(PS3), XBOX and Nintendo WII game units. You can even buy washing machines and fridge freezers. But no matter what you buy, it is critical that you pay weekly on your loan. If you do this, lenders will see that you are being a responsible consumer and your credit score will start to get better over time.
If a bankruptcy, insolvency, CCJ or default has caused your credit history to spiral out of control, know that there is hope and that your bad credit history can become a good one with a little bit of forethought and planning.