Let face it, with a poor credit history your options to borrow money are more limited, and therefore many companies have seen this as an opportunity to take advantage of people with ‘dodgy’ lending practices and charging exorbitant fees and driving people deeper and deeper into debt.
So when you are on the internet looking for a ‘poor credit options’; what are the things that you should at all costs avoid:
Avoid Companies Without A Consumer Credit License
The FCA is a UK Government body that offers some protection just in case something goes wrong; to find out a companies CCL just look in the footer of their website.
If you borrow money from a company without a CCL you will have much less protection if something goes wrong; for example a lender advertises on their website an interest rate of 100% APR; but when you take the loan out you realise that in fact they are charging you 1000% APR, if they do not have a CCL you could have much less back up.
Plus, do you really want to be dealing with a company who is not professional enough to get a Consumer Credit License; especially when there are many other companies out there who offer great finance options and do.
Keep Your Options Open
There are a variety of online finance options available. Pay day, doorstep and guarantor loans are some of the most popular options and there are many more asides. It is easy to be swamped by the options; though by doing a bit of research up front you could save yourself the heartache and stress of an extremely expensive option that you cannot pay back to a lender who could also be heartless and aggressive. Though to avoid this all need to do a little bit of work and shop around;
- make a few applications
- compare the costs
- compare the professionalism of each company
Applying through AllCreditLoans.net and your application will be sent immediately to over 10 guarantor lenders; you will multiple offers to compare within minutes of making your application.
For those who need to borrow, some of the current options can be vicious – even the best deals have more tricks than Paul Daniels’ sleeve.
Borrowing should always be budgeted for, and carefully planned, so you know how you will afford the repayments.
Avoid Just Focusing On the Money You Need & Speed
When a financial crisis hits, it is very difficult not to just focus on the money you need and the speed in which you need it.
This type of thinking can often lead to bad decisions; such as taking out expensive options that in the long term may increase your financial worries.
So instead we would recommend taking a deep breath and thinking about your situation, focus on how much you can afford to pay back, then think about the absolute minimum amount of money you need to get by and borrow.
- Further Reading
- 3 Things To Avoid With Long Term Loans For Bad Credit
- The 5 Dangers of Payday Loans for Bad Credit
- Loans With Bad Credit – 5 Loans You Can Get
- 4 Ways To Get Personal Loans For Bad Credit
- The 3 Worst Bad Credit Loans In The UK!
- Why Applying for Loans for Bad Credit Direct with Lenders May Not be the Best Move
- The 3 Secrets Every Bad Credit Personal Loans Borrower Should Know
More helpful articles
Helping you borrow money
Bad credit rating OK
Affordable rates and fees
Fast application and payout
One application to multiple lenders
No broker or application fees
No early redemption fees
Secure online application
How it works?
- No credit checking at this stage*
- No obligation to take out finance
- No application fees
- Secure online application