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What is a bad credit loan?
This is a loan for people who have experienced financial difficulty in the past such as late or missed payments; County Court Judgements (CCJs) and Arrears etc. You will be deemed as having ‘bad credit’ and could find it difficult and expensive to get a loan. However, there are sympathetic lenders who will provide you with a loan even if you do have bad credit, hence the term ‘bad credit loan’.
What is a loan broker?
A loan broker is someone who searches the marketplace for the most suitable loan for an individual. A loan broker works as an intermediary between the customer and a loan provider. He will recommend and arranges the loan on behalf of the client. Some brokers charge an arrangement fee for this service.
What is an arrangement fee?
An arrangement fee is something that is charged by a lender or broker when you take out borrowing such as a loan or mortgage. It is to cover their costs in arranging the lending. Some lenders will offer this free of charge in order to attract new customers.
What is Experian?
Experian is one of the major UK credit reference agencies.Lenders will use a credit reference agency to check the suitability of an applicant based on their financial history. This is known as a credit report.As a consumer, you can request a copy of your credit file from Experian to check that all the data on it is correct and that your details have not been used fraudulently.
What is a CCJ?
A CCJ actually means County Court Judgement. This is a judgement made in a County Court against someone who is in debt to a third party (an individual or company) or where they have failed to meet the terms of a credit agreement.The Judgement will set an affordable payment plan so that the debtor can repay their debt. CCJ’s are held on public record and will affect the debtor’s chance of getting further credit for up to six years.