{"id":407,"date":"2021-03-11T04:51:38","date_gmt":"2021-03-11T04:51:38","guid":{"rendered":"https:\/\/www.safemoneyloan.co.uk\/blog\/?p=407"},"modified":"2021-03-11T04:51:40","modified_gmt":"2021-03-11T04:51:40","slug":"how-to-get-a-loan-if-you-have-a-very-poor-credit-score","status":"publish","type":"post","link":"https:\/\/www.safemoneyloan.co.uk\/blog\/how-to-get-a-loan-if-you-have-a-very-poor-credit-score\/","title":{"rendered":"How to Get a Loan If You Have a Very Poor credit Score?"},"content":{"rendered":"\n

Poor credit\nrating makes it hard to get approval for a loan, but a very poor credit score\nmakes it harder. If you have a very poor credit score, it should raise an alarm\nbell. You may have a CCJ too. When you do not pay off your debts on time,\nlenders can start chasing you, and if you do not turn to their email and\nletters, they issue a CCJ against you. <\/p>\n\n\n\n

It is a\ncourt order that gives you a time limit within which you are to settle your\ndebts. Once a CCJ is issued against you, it will show up on your credit report\nfor six years. It means you will not be able to take out a loan at competitive\ninterest rates. Various lenders do not accept applications from people with\nCCJ. Here is how you can get a loan if you have a very poor credit score.<\/p>\n\n\n\n

Try to improve your credit score<\/h2>\n\n\n\n

Although a\nfew lenders can sign off on your application with a CCJ, you should improve\nyour credit score. This will increase your options, and you can borrow money at\naffordable interest rates. Since your credit file is blemished, you cannot borrow\na large amount of money, but there are various ways to build your credit score.\n<\/p>\n\n\n\n

For\ninstance, try to get a loan that is to be paid off in a couple of instalments.\nIf you pay down all instalments on time, it will show that you stay committed\nto your financial obligations. Further, do not forget to pay all your utility\nbills on time. <\/p>\n\n\n\n

If you use\na credit card, make sure that you pay back the balance within the interest-free\nperiod. Since you have a CCJ, the loan you will get is called loans for\nCCJs<\/a><\/strong>. If you stay committed to your financial obligations, your credit\nscore will gradually improve. It will improve from very poor to bad, and then\nyou will be able to apply for bad credit\nloans<\/strong>. These loans are generally more affordable than loans with CCJ. <\/p>\n\n\n\n

Talk to your lender<\/h2>\n\n\n\n

When you\nhave a CCJ, you should talk to the lender at the time of applying for the loan.\nTell them your actual financial condition and why you got behind repayments. <\/p>\n\n\n\n

If they\nfind that you had a genuine reason for being failed to meet your obligation,\nthey will likely be ready to lend you money at lower interest rates. <\/p>\n\n\n\n

Instead of\napplying with a new lender, you should seek borrowing money from your current\nlender. However, if you have a habit of committing a default periodically, your\nlender will not get convinced of your situation. They will likely believe that\nyour story is a plain concoction. <\/p>\n\n\n\n

Research<\/h2>\n\n\n\n

Since not\nmany lenders offer CCJ loans, you may think that you do not need to research.\nRemember that each lender offers different interest rates. If you shop around,\nyou can compare deals offered by them to help you choose that best suits your\nneeds and budget. <\/p>\n\n\n\n

Experts\nsuggest that you shop around the market not to end up with an expensive deal.\nHowever, you need to consider various things apart from interest rates while\nborrowing money, such as early payment penalty, late payment fees, processing\nfees, and the like.<\/p>\n\n\n\n

Secure your loan<\/h2>\n\n\n\n

Since you\nknow that a lender will not let you borrow a large amount of money, and most of\nthem will require you to pay in a lump sum, you should pledge collateral. <\/p>\n\n\n\n

It will not\nonly help you borrow money at lower interest rates, but you will also pay down the\ndebt over an extended period. <\/p>\n\n\n\n

This will help\nyou build your credit score. Note that the collateral will be worth more than\nthe borrowing money. If you fail to pay off the debt, you will lose the\ncollateral. <\/p>\n\n\n\n

Take out a joint loan<\/h2>\n\n\n\n

A joint\nloan cannot let you borrow money at very attractive interest rates even if your\nco-applicant has a good credit score, but this is a great way when you need a\nlarge amount of money. The other method is to arrange a guarantor. <\/p>\n\n\n\n

A guarantor\nmust have a good credit rating. You will be able to use the borrowed money, and\nthe guarantor will guarantee your timely repayments. <\/p>\n\n\n\n

If you fail\nto pay off the debt, the guarantor will be obliged to pay off the debt. The\nlender will turn to the guarantor when all means of getting money fail. <\/p>\n\n\n\n

Undoubtedly,\nmany lenders will not entertain your application if you have a very poor credit\nrating. If any approves, you will end up paying it back at a very high-interest\nrate. If you are looking to borrow money at a competitive interest rate, you\ncan if you follow the tips mentioned above.<\/p>\n","protected":false},"excerpt":{"rendered":"

Poor credit rating makes it hard to get approval for a loan, but a very poor credit score makes it harder. If you have a very poor credit score, it…<\/p>\n","protected":false},"author":1,"featured_media":408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[30],"class_list":["post-407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans","tag-loans-for-ccjs-and-bad-credit-direct-lenders-no-guarantor","entry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts\/407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=407"}],"version-history":[{"count":1,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts\/407\/revisions"}],"predecessor-version":[{"id":409,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/posts\/407\/revisions\/409"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/media\/408"}],"wp:attachment":[{"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.safemoneyloan.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}