Guide to Bad Credit Loans for Tenants

Bad credit loans for tenants are available to tenants in the UK. You may be in a position where you need a tenant loan to buy something that you can't do without, a car for example or you may be in a position where you need to consolidate and refinance your debts to make them easier to handle. Most adverts you will see on the TV, on the Internet, in newspapers etc are for loans for UK homeowners. Maybe you have applied to high street banks for a tenant loan but have been turned down for an unsecured loan because of your bad credit.

There are options for UK tenants with bad credit and this page is designed to give you an idea of what is available in terms of tenant and non homeowner credit.

Many people think that secured loans are for homeowners only, and this is the most common type of secured loan. However, you can often use any type of large possession as security. For example you can secure your tenant loan against your car or other vehicle. The lender will register a charge against the title of the car but the car remains in your possession for use. The charge is lifted when you clear the bad credit loan for tenants. Possession of the car passes to the lender if you fail to repay the loan - this is unusual though since the cost of repossession is something a lender would rather avoid.

Pawnbrokers work in a similar way to a secured tenant loan however they will often lend less money. You can take your possessions (jewellery, television etc) into the pawn shop, they will hold the item for a certain length of time and in exchange they will give you a small bad credit loan. You need to pay back the bad credit loan before the end of the holding time otherwise your possessions can be put in the pawn shop for public sale.

Bank loans are often the first choice of loan for a UK tenant. However banks and building societies on the UK high street are strict lenders and will not lend bad credit loans to tenants with bad credit such as ccjs, defaults, arrears or even missed or late credit card bills etc. Sometimes they will not even lend a tenant loan if they have no credit history or if they do not appear on the voters roll. Bank loans and building society loans are not really an option for tenants looking for bad credit loans for tenants.

Finance company loans are available through the internet, including this site. There are a lot of brokers offering bad credit loans for tenants with bad credit and many will use the same lenders to find quotes for you. Most of these finance company loans will be quoted as unsecured loans and you should compare rates using the APR rate quoted on the loans quote.

Debt management loans companies are companies that specialise in helping tenants and homeowners consolidate their debts without borrowing a debt consolidation loan. The UK loan company will speak to your creditors and discuss the possibility of freezing interest and sorting out an easier payment plan. These debt management companies are good if you have no alternatives but they will not allow you to borrow any extra money, they will only help you repay the debts that you already have.

Often borrowing money from family is not considered an option for a tenant with bad credit. However, depending on your circumstances and on your family's circumstances, you may find that family help is the answer.