Tell me about credit rating
Everyone has a credit rating, which is based on their credit history.Financial companies share information about money you borrow (e.g. mortgages, credit cards, store cards, overdrafts, student loans, etc.) and about your track record of paying the money back when you're supposed to.
If you have traditionally been a slow payer (e.g. you frequently pay your credit card bills late), the chances are you will have a poor credit rating.
If you have ever defaulted on a loan (i.e. not paid it back), then you will have an extremely poor credit rating and may find it difficult to borrow money at all.
People with credit cards and loans who make payments on time could possibly have a better credit rating than someone with no debts at all, as they have a history of managing debt and making regular repayments.
Bad credit loans
The good news is that some lenders will still lend money to people with bad credt ratings.The bad news is that they will charge you more (i.e. a higher APR) because you are perceived to be more risky than someone with a good credit rating.
Use the Loan Genie search loans tool to find lenders that offer bad credit loans.
Check your credit rating
If you are worried about your credit rating, you can actually check it. Follow one of the links below.Equifax
Credit Expert
Similarly, if you are rejected for a loan on the basis that your credit rating is poor, it's worth checking your credit rating to find out why. You never know, mistakes happen.