The recent housing market slump, the recession and the world economy has taken a huge toll on just about everyone. Many of us struggle to pay our monthly bills and our finances never seem as though they will get any better. Eventually you may get to the stage where you can no longer afford your monthly outgoings and this then leads to all sorts of problems. Late and missed payments, a poor credit rating, CCJ’s, defaults, bankruptcy, the list seems endless.
Whenever you do find yourself in this situation one of the first things most people consider is trying to obtain an unsecured personal loan. This will no doubt ease many of your current financial worries. However, getting an unsecured personal loan when you have a poor credit rating is easier said than done.
I have found that many people’s initial approach to this situation is what is letting them down. So if you really want to get an unsecured personal loan, please sit back and read.
First things first, get a copy of your credit report. You can get a free copy once every 12 months from either, Experian, Eequifax or TransUnion. If you have poor credit, make sure you know exactly why. Once you have checked through your credit report, make a list of anything that appears untoward (even a misspelled name or incorrect address can effect your ability to borrow money). Any errors, make sure you contact the specific lenders and let them know.
Next make a budget plan. Detail on paper all your household income and expenses. So for income, this should include salaries, dividends from shares, pensions, benefit payments, etc. Your expenses should include everything – mortgage/rent, property taxes, utility bills, school/college fees, food, entertainment…just about everything you can think of. From this, work out whether you have any excess cash at the end of the month or are currently living beyond your means.
Then it’s time to do some research. There are literally millions of financial websites that offer loan calculators. Now i may be wrong, but the main reason that people look for poor credit rating loans is to consolidate their current debts. By doing this, you no longer have to worry about paying several lenders and usually by consolidating your debts your monthly outgoings should reduce! Calculate from these websites, how much of a loan you need to cover all your debts and how long you wish to take to loan out for. You should then be given a monthly repayment amount. Is this less than you are currently paying? I hope so!
Print out your findings and put them together with your credit report and your budget plan. Now if you choose to approach a lender for a Poor Credit Rating Loan, you are far more prepared. Additionally any bank or financial institution is far more likely to take you seriously when you have made this kind of effort. This shows responsibility and a willingness to dig yourself out of your financial hole!
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