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.
There are many factors that can affect your car insurance, from age and gender to where you live and your experience on the road. One thing certain to drive your insurance premiums up or down, more than you might realise, is your job. Location, hours and even who travels with you are all factors that can class you as a high-risk to insurers.
Getting a loan approved quickly can stop a sudden household crisis or cash flow issue becoming a catastrophe. Many types of short-term loans can be approved in almost no time at all, and even if you have bad credit they are a viable financial solution to a temporary problem.
Any company providing credit must meet minimum standards provided by the Financial Conduct Authority or FCA. These standards assess a company’s business plan and ensure “fit and proper” people operate the business. This considers factors such as honesty, integrity and reputation, as well as competence, capability and financial soundness.
It isn’t uncommon to worry about applying for a loan or another financial service, even more so if you’ve never run a credit report on yourself and have no idea what it will turn up. However, if you know exactly how your lender will assess if you’re a poor credit risk, you’ll be able to plan a way forward.
Applying for any standard bank loan comes with those two dreaded words: credit check. Maybe you’re worried that your lender will turn you down because you were late paying your credit card bill, you have a CCJ or you’re self employed, or simply that the credit check will turn up on your credit report and affect your ability to take out future loans. Perhaps you need to deal with some kind of emergency, and you don’t want to have to wait.