Will I Get Charged More For A Loan If I Have Bad Credit?
You might assume having a poor credit rating prevents you from ever being approved for a loan again. This isn’t always the case, as there are many financial products available for people with a poor credit history.
However, a so-called ‘bad credit loan’ isn’t necessarily the right solution for everyone; a Logbook Loan for example, is ideal for people with bad credit, but it is not a bad credit loan, which means there is no penalty for a negative credit history.
Bad Credit Loans
Bad credit loans are lending options tailored towards people with poor credit history. They provide access to lending and can help borrowers rebuild a credit score.
However, be aware that:
The increased risk the lender is taking, when they loan money to someone who has struggled to manage their money in the past, is reflected in the higher interest rates and monthly repayments. So, while you might need the money urgently, it will cost you in the long term.
An alternative solution
There are alternative ways get a short-term loan if you have a bad credit history. With a Logbook Loan you can use your vehicle as collateral to secure the amount you decide to borrow – and you can keep driving the car until you’ve repaid the loan.
We’ve got a handy Logbook Loan calculator on our home page which will work out instantly how much you can borrow against your car. All you need is your registration number and your mileage.