There could be many reasons why you have got a bad credit rating, it could be from problems in you past which you have now overcome yet still you can’t get a loan and are refused time and time and again when it comes to applying for credit.
If this is you then you could still get credit you just have to know where to look and the type of credit to apply for, the best way is by applying for a secured bad credit loan.
A secured bad credit loan can be easier to get for those who are having trouble getting accepted for credit and it can be used for just about anything, be it home improvements, or to buy a new car. However those who have a history of bad credit to tend to get penalised by having to pay a higher rate of interest. Your credit history is what all lenders will look at when it comes to you applying for a loan and there are many factors which can give you a low credit rating score.
While you will be paying a higher rate of interest than those who have a perfect credit score by taking a secured bad credit loan you can in time build up your credit rating by keeping up with the repayments. A secured bad credit loan means that you will have to put something of value down as a way of a deposit in case you should default on the loan.
The lender will usually ask that you put down your home as security against the loan and if you should default on the repayment then the lender can take repossession of your home so it is imperative that you know that you make the repayments for the loan. This type of loan is the easiest to get if you have a bad credit rating but it does vary from lender to lender in the factors that are taken into account, you should also be aware that while the interest rates will be higher than the normal loan, rates may fluctuate among the lenders.