All the information on Bad Credit Loans, payday loans and loans for people with bad credit
This is where you will find all of the information you need on the financial products which are listed on this website. Information on bad credit loans, payday loans, cash for gold, poor credit rating cards, IVAs and debt management is provided here.
Credit-Bad-Loan for bad credit loans information
We seek to provide you the customer, with relevant information that will help you find a loan. It is not always easy to find a loan, and a lot of websites may try to sell you products you don’t want. We want to help you find the loans which suit you the best.
Bad Credit Loans
This kind of loan is aimed at people who have had problems with their credit history in the past. But unlike a payday loan which is also aimed at people with credit rating issues, Bad Credit Loans can be anything from secured, unsecured or a credit card. A payday loan is just one type of loan with very specific criteria. A Bad Credit Loan provider will be able to search the market on your behalf and will be able to source a lender who is willing to take you on even if you have had problems being accepted elsewhere. This kind of loan has been harder to get hold of since the 2008 global financial downturn as lenders have become more reluctant to lend money to high-risk borrowers. However, using a good service means you most probably find a lender willing to take on a bit of extra risk. Of course, because you are higher risk, you may be subject to strict terms, so check these before taking the loan.
Payday loans are designed for those who have a poor credit history, CCJs, or even no credit history. If you are new in a country, or a recently graduated student, it can be hard to be accepted on a payday loan through no fault of your own. Payday Loans can be a lifesaver when you really need to get your hands on some extra cash. This might be for bill which urgently needs paying, or even a holiday. The idea is that you pay back the loan by next pay day - usually within two weeks to a month. What is key to this kind of loan is that you are prepared for the repayment, as the APR rate is usually pretty high. That means you could end up paying back much more than you’d like. If you are unable to pay back, you could end up with a worse credit rating than you began with!
Cash For Gold
Cash for gold companies will buy your unwanted gold items from you. This includes jewellery, coins, bullion and many more items. Some companies will also accept other precious metals. The process is really simple; when you have found a gold buying service simply request their gold envelope (this is sometimes referred to as a gold pack or G Pak). The cash for gold company will then securely value your items and offer you money. If you are happy with the amount they offer, you can cash the cheque they send. If you are not happy with the amount they have quoted you can usually request to have your gold returned.
Poor Credit Rating Cards
A poor rating credit cards gives people who may be refused for 'regular' credit products a chance to get what they want. It can be tiresome being seen as 'unsuitable' for credit cards and with a poor rating credit card a weak credit sore needn't stand in the way.
Many cards carry special features which are worth checking out - such as a credit building facility. This allows the cardholder to improve their credit rating based on their repayment history on this card. In other words, if you keep up with your repayments you can improve your future chances of borrowing. Some cards will raise your credit limit if you are on time with repayments. The APR is likely to be high but if you pay the card off every month you shouldn’t have too many problems.
IVAs: Individual Voluntary Arrangements
An individual voluntary arrangement (IVA) is an agreement between you and your creditors (people you owe money to) to pay all or part of your debts. You make regular payments to an authorised debt specialist called an ‘insolvency practitioner’ (IP). They share this money out between your creditors as agreed in your IVA.
There is no maximum or minimum level of debt and no maximum or minimum level of repayments, except what is acceptable to your creditors. Your IVA usually ends when the agreed amount has been repaid. An IP will charge a fee for negotiating with your creditors and managing your IVA. For example, you might pay a ‘setup fee’ and an extra fee every time you make a monthly payment.
Make sure you understand the full costs of your IVA before asking an IP to act for you. If you need help, get free advice from an organisation like Citizens Advice or the National Debtline.
Debt Management Plans
A debt management plan is an agreement between you and your creditors (the businesses you owe money to) to make a set monthly payment. The plans are managed by companies known as debt management plan ‘operators’ or ‘providers’, who negotiate with your creditors and manage the payments on your behalf.
Your monthly payment is based on how much you can afford to pay. This payment is then distributed fairly between all your creditors. Debt management plans can only be used to pay ‘unsecured’ debts - money that you owe that hasn’t been guaranteed against your property, for example.
Some companies will charge you a fee for this, while others provide their services for free. Get advice before setting up a plan with a provider. Many organisations offer free and independent advice - see the section below, 'Get free advice about your debt'.