Unsecured Loans For Tenants - Problems With Adverse Credit?

Tenants, it’s sometimes true, can have difficulty in raising finance in the conventional way. That is to say that applying to a bank for instance doesn’t always provide the best solution if you need some cash to buy something special that you’ve had your eye on for a while. Banks, like many other mainstream financial institutions are notoriously cautious when it comes to how they lend their money. For them, bad debt is almost taboo and to ensure that they don’t have to encounter significant problems in this area, they try and limit their exposure to risk in how they go about lending money. The result can often be to throw the baby out with the bathwater in the sense that many would-be borrowers are excluded from applying because they do not fit a very particular criteria of financial circumstances.

Adverse credit, otherwise known as poor credit or bad credit, affects a large number of people and not necessarily through any fault on the part of the individual. It can be caused by circumstances entirely outside of your control. Nevertheless, adverse credit can affect your credit rating with a prospective lender.

Categories of adverse credit include repayment arrears, defaults or even CCJs. A lender will ask your permission to search your credit file with a credit reference agency so that they may see whether you have missed any repayments on existing or past credit agreements. Whilst not foolproof, it does enable them to build a picture of whether you are potentially a good risk for them in their eyes.

Along with a credit search, they will ask a series of other questions that they will use to build a complete picture of your financial circumstances and apply a number to each answer. The totalling of these values provides an overall credit rating number and this decides whether you can have the money or not. Each lender uses a different system however; so if your credit rating is not perfect for one lender then don’t assume that it will be the same for everyone. Unsecured loans for tenants and tenant loans applications can be accepted by some lenders and refused by others depending on how they use their credit rating system. They may be looking for a specific type of customer and you just don’t meet that profile but you may be perfect for another lender that specialises in that area of the market.

Adverse credit can often make it more difficult to get a loan but not always impossible. Unsecured loans for tenants and tenant loans, as many would argue, are sometimes easier to get if you apply via an online finance broker. Brokers have access to many lenders and often provide an important role in an application. They may help by filtering out some of the lenders that are unlikely to offer you the money and giving you a choice of those that might.

Simply complete the online enquiry form and wait for a call from a loan officer who will help you through your application. Unsecured loans for tenants and tenant loans are much easier to apply for than secured loans, so you may be able to acquire the funds you need within a week or two. Good hunting!

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About the author:
Carol Jameson is FinanceGuru for FeelGoodLoans.co.uk, specialists in unsecured tenant loans, loans and mortgages for UK homeowners and business owners.

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