Bad credit can be the result of poor financial habits or pure uncontrollable circumstances. Whatever be the reason behind you ending up with bad credit, but once you have a negative mark on your credit report, it will stay there for at least six years. Even if you clear all your debts and continue to pay your utility bills on time, the negative impact of the earlier times will remain on your credit report and haunt you in every area of your life. First of all if you have bad credit then mainstream lenders and banks will refuse to give you loans. It will become difficult if not impossible to get any kind of credit from the market. At the same time, nowadays even employers look at your credit history before hiring you for a job, hence it may become difficult to get a good job. The same is true of landlords who check your credit report before renting out their property to you and they may refuse to do so if you have bad credit
If you have bad credit and need a loan
In this situation your best bet is to approach a good loan broker. All loan brokers have tie-ups with various specialist lenders and these specialist lenders are ready to take a higher risk and provide loans even to people with bad credit. The best part is that with the help of loan brokers you can even get unsecured loans for bad credit. Unsecured loans have no collateral attached to them and this is the reason that the risk is greater for the lender. However, modern day specialist lenders are only interested in the fact, that currently you have a stable job and good income with the help of which you can repay the loan comfortably. It is true that lenders charge a higher rate of interest on business loans for bad credit and other loans for bad credit, but with the help of loan brokers you can get loans at a reasonable and affordable rate of interest.
Why do businesses need loans?
If you are planning to start a business you may require loan for the starting capital. Even established businesses often need a financial helping hand in order to expand their operations, buy new and expensive equipment or to enlarge their physical premises. This helping hand is available in the form of business loans. However, if you have bad credit then as mentioned above it is ideal to approach a loan broker for the loan. With the help of a loan broker you will get a business loan even if you have bad credit, but the interest may be a little higher because first of all a business loan is an unsecured loan and due to your bad credit, the lender is taking a higher risk.
What do you do if you have no guarantor?
If you have bad credit but are able to provide a guarantor who will co-sign the loan, then it becomes easier to get a loan from mainstream banks, but if you don’t have a guarantor then your best option is to approach a loan broker to help you get long term loans for bad credit no guarantor.