Adverse Credit Loans May be the Answer if Banks Refused Credit

As banks tighten their lending criteria many people, already refused credit, are forced to move away from traditional lenders in their search for an adverse credit loan.

There are a number of options to consider but in the same way as the terms and conditions of banks and building societies should be evaluated, companies in the business of providing adverse credit loans should be thoroughly researched for the best deals.

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As banks tighten their lending criteria many people, already refused credit, are forced to move away from traditional lenders in their search for an adverse credit loan.

There are a number of options to consider but in the same way as the terms and conditions of banks and building societies should be evaluated, companies in the business of providing adverse credit loans should be thoroughly researched for the best deals.

Where to find Adverse Credit Loans

A trawl of the Internet reveals a number of companies offering adverse credit loans and CCJ loans without credit check, many also advertise a same day decision.

Again the advice is to compare the interest rates (APR) it’s a legal requirement in the UK to display it. It’s also worth checking out the repayment options, is there for example an opportunity to repay the loan early and if so what charges are involved? However there is no getting away from the fact that adverse credit loans or CCJ loans are always going to carry a higher rate of interest.

As a guide to previous customer experience many lenders are discussed in online financial review sites. For those who are unsure about which lender to select these reviews might provide some peace of mind.

Doorstep Loans

Doorstep lending normally involves smaller amounts of money, perhaps £50 – £500. As the name suggests, doorstep lending involves the loan being delivered to the house by an agent with weekly repayments also being collected by the same agent. For many existing borrowers that regular contact with the collector, usually a local person, is one of the plus points of the transaction. Most doorstep lenders will offer loans with poor credit.

On the down side interest rates are generally on the high side. Provident Personal Credit, one of the UK’s best-known doorstep lenders gives this example:

  • Borrow £300
  • Repay £10.50 over 52 weeks
  • Total repaid £546
  • Typical APR 272.2%

Pawnbrokers Loans

In the UK, pawnbrokers have changed considerably over the last few years with many shops discarding their seedy environment for one more conducive for doing business. Many are seeing an increase in turnover from borrowers who have been refused credit elsewhere.

Alongside their traditional pledging goods for cash, many pawnbrokers now also offer a range of other financial services, which include:

  • Payday Loans
  • Logbook Loans
  • Loans for adverse credit
  • CCJ Loans

For those refused credit from a bank or building society there are other avenues open to them but make sure that their lender of choice is licensed. In the UK all lenders must be licensed by the Office of Fair Trading and comply with the Consumer Credit Act 1974.