Steps you need to take when you need money and have bad credit

What to do if you have bad credit and can’t get a loan/remortgage!

Many people, especially in today’s credit crisis, are finding it difficult to secure a loan or remortgage due to bad credit. In order to secure your loan or remortgage, there a number of options available to you.

1 - Your existing mortgage company or bank/building society

This should be your first port of call

If you currently have a mortgage on a property which you have not defaulted on, and the property has a reasonable amount of equity, then your existing lender is the most likely to lend you the money because you have a proven track record and an existing relationship with them.

If you require a loan, and you don’t want it secured against your property, your bank or building society could be the best option. This is because they can see your banking history.

One thing to bear in mind is that whilst your existing lender of bank may be the most likely to be able to assist you, they may not necessarily be your best option. It is important to also try option 2.

2 – Financial advisor

This is the second port of call

If you have been unsuccessful with option 1, a qualified financial advisor will be able to research the financial market and find a possible finance solution for you, but please bear in mind if you have bad credit history you will normally find that you would have to pay a higher rate of interest.

If you were successful with option 1 it is always a good option to see if there is another company willing to provide you with the finance. The main reason for this is the financial advisor may be able to secure a lower rate than offered by your existing lender.

3 – Secured loan. The third port of call (NOT AN OPTION WE WOULD NECESSARILY RECOMMEND)

This is where you are offered a loan by a finance company. Although this may sound like great news, they will require the loan to be secured against your home or business.

You will generally find that, if you have bad credit, the companies willing to provide you with a secured loan will generally charge you a ridiculous interest rate compared to the first two options. If you are in a situation where you need money and you have tried options 1 & 2 but have been unsuccessful, you may think that option 3 is the last resort and you don’t have an alternative.

Until recently this was the case.

There is another option which you may not have thought of trying because you didn’t want to, but if you have been unsuccessful and option 3 is the only one left, we recommend you also look at a quick property sale.

4 – Quick Property Sale

Selling your property via a quick property sale company and moving into rented accomodation, allows you to avoid repossession and get out of the predicament that you are faced with.

The advantage of this option is you won’t lose your home if you get further bad credit or your financial situation doesn’t improve. As long as you act quickly enough you will be able to rescue your credit file. 

Although this will give you the potential of a lump sum of money, the biggest downside is that you will no longer own your own home.

Please note that you need to make sure that you find the quick property sale company.

Also see:

Bad credit
Debt Collectors
County Counrt Judgment
Quick Property Sale

Contact us or apply online to enquiry about the quick property sale service.