Bad credit loan solutions dwindling

The range of options for people with blemishes on their credit record is narrowing. The Motley Fool financial advice website has reported that one solution for debtors, the Individual Voluntary Arrangement, or IVA, is on its way out – raising the question: are bad credit loan opportunities running out?

The Fool said that, “Banks are cracking down on the number of IVAs that they agree to. In fact, IVAs are becoming so difficult to arrange that they are becoming unprofitable to debt-solution companies.”

The article adds, “The negative side is that one of our four debt solutions is gradually becoming harder to do. This is not good news for the people whose best solution is an IVA.”

Of course, not everyone’s bad credit loan requirements are such that they need an IVA. From missing the odd payment to having outstanding CCJs, other options are available. But, the Fool believes, “To consider an IVA, you should have at least £15,000 of debt spread between at least three organisations. [And as] some people couldn't continue in their profession if they went bankrupt … an IVA is much more preferable.”

So the IVA’s apparent impending demise will limit the options available to people looking for bad credit loan solutions. And many banks are looking to “clean up” their loan books – with many making scapegoats out of people who might have had bad credit problems in the past, and refusing to lend them money regardless of their current creditworthiness.

Not all banks are doing this – yet – and if you are looking for a bad credit loan then speaking to a broker who specialises in that area will help you explore all your options.

It is also worth remembering that if you are a homeowner then you may be sitting on an incredibly valuable asset – and a specialist broker may be able to help you cash it in.

Even if you don’t own a home, it’s worth speaking to a professional to consider your options.

Get bad credit loan help from Homebank
If you are thinking about a bad credit loan, let the experts save you time and money by finding the right one for you.

Homebank have qualified mortgage consultants ready to advise you with all your debt consolidation, mortgage and insurance needs. For informative, insightful advice on bad credit loans, call us to arrange a no-obligation appointment to suit you.

Homebank are the “people’s mortgage broker”, with thousands of products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal bad credit loan product for you. Call Homebank free now on 0800 052 3604.