Bad credit loans help survive crunch

With bad credit, loan chances may seem remote – but could help you survive the ‘credit crunch’

Increasing media attention is being given to the ‘credit crunch’ – the tightening up by banks, credit card companies and other lenders on how much money they will lend, and to whom. For anyone with bad credit, loans may seem a distant possibility -- but with careful financial planning could provide a way to get through the ‘crunch’ times.

In an article on the Daily Telegraph website (headlined “Credit crunch: don’t get blown away by the debt storm”), the British broadsheet newspaper points out that “up to 3.3m prospective credit card holders have had their applications rejected in the past six months” and that “Barclaycard [is] now rejecting 55 per cent of new applicants . . . and has reduced credit limits for half a million customers since the start of 2006” – bad news for credit loan providers and borrowers.

Sean Gardner, Sean Gardner, MoneyExpert.com chief executive, told the newspaper, "Credit is undoubtedly harder to come by than it has been for a long time.”, and Julia Harris from Moneyfacts.co.uk said, "Clearly the reduction means less choice for borrowers, particularly for those with bad credit [loan histories].”

Options for bad credit loan searchers

But if you’ve got a bad credit loan repayment history, or an increasingly unmanageable level of different debts, then finding a debt consolidation loan – or switching existing loans to a new provider – could save money, improve your credit rating, and help survive the credit crunch.

If a mortgage is coming to the end of a fixed-rate period then looking for another deal could save literally thousands of pounds – even if it’s just moving from one bad credit loan mortgage to another.

The Telegraph also suggests checking your credit record to make sure the details available to lenders are correct. Someone else’s bad credit loan record might have got mixed with your repayment history.

Focus on expensive debts first to avoid making bad credit loan rating worse

It also advises prioritising debts and paying off the most expensive first – starting with council tax and TV licences, which carry a jail sentence rather than a bad credit loan record for non-payment. But “Once you have dealt with these debts, turn your attention to the most expensive items, typically store and credit cards, personal loans and overdrafts.”

Switching expensive store and credit cards – those with the highest rates of interest – to one bad credit loan, with easy-to-manage monthly repayments, could be the easiest way to do this – and help you survive the credit crunch.

Homebank can meet your bad credit loan needs

Every journey starts with a small step, and talking to a bad credit loan adviser today could lead to a massive improvement in your finances.

Homebank have only the best mortgage consultants, ready to advise you with all your mortgage and insurance needs.

For informative and astute bad credit loan advice, call us to arrange a no-obligation appointment to suit you. Homebank are the ‘people’s mortgage broker’, with more than 3,500 mortgage products to choose from – including products not readily available on the high street.

Homebank’s experienced consultants can find the best product for you. Call Homebank now – free – on 0800 052 3604.