Bad Credit? How to Get Loans and Credit Cards
Securing Finance with Adverse Credit and Serious Debt Problems
Nov 19, 2008
Whether a payment was made a couple of weeks late or a default notice has been served, it all amounts to bad credit. This makes it vastly more difficult to get any form of financing from a bank. The severity of any credit problem will usually be assessed by the lender, but sometimes no human decision making enters the equation at all.
Bad Credit Bank Accounts
Applying for a bad credit bank account usually results in an automated rejection from the lender. It can be surprising to find out that there are a number of basic bank accounts that are available for those with bad credit, serious debt problems and even undischarged bankrupts.
Suitable Bank Accounts for Those with Adverse Credit, Including Discharged Bankrupts
- Yorkshire Bank Ready Cash
- Natwest Step Account - Solo card
- Barclays Cash Card Account
Suitable Bank Accounts for Undischarged Bankrupts
- Nationwide Flex Account
- Co-Operative Bank Cash Minder Account - Visa Electron card
Pre Paid Credit Cards
Although being an undischarged bankrupt or having adverse credit problems remains an issue, it is still possible to get a pre paid credit card. No credit check will be necessary so acceptance is guaranteed.
Getting a Regular Credit Card with an Adverse Credit History
It is still possible to get a credit card with an adverse payment history but a higher rate of APR will be charged by lenders to underwrite the higher risk.
Bad Credit Secured Loans
If unsecured loans aren't an option, a bad credit secured loan may be the answer. It allows the borrower to put all debts under one roof and spread payment over a longer term. The rate of interest is also lower on a secured loan.
Unsecured Payday Loans
It is possible to get an unsecured Payday loan to help get through the month, but the rate of APR charged is extremely high. It provides a useful short term form of financial assistance, but should never be considered a long term debt solution.
Identifying a Debt Solution for Tackling Serious Debt Problems
No matter how problematic a financial situation may seem, there is always a potential debt solution out there. Don't borrow more if a serious debt problem exists. Debt solutions include: Debt Management Plans, Individual Voluntary Arrangements and personal bankruptcy.
After a period of 6 years has elapsed, all adverse entries are removed from credit reports. Although this tempts people to run away from debts, it is usually best to deal with them swiftly so things don't get any worse. Always remember to consult a debt counsellor before proceeding with a debt solution.
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