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Bad Credit Loans compared

Your guide to all Personal loans

Personal loans are suitable for those with any type of credit rating and are useful in times when you need a debit card when you don't have a bank account.

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Unsecured Personal Loans – Best Credit Option for Retaining Home Ownership

Recent news from the Citizen's Advice Bureau is quite alarming: since 2000 there has been a 722% increase in the number of charging orders, as lenders are asking for consumer debts to be secured against the home. The best way for consumers to counter this is to ensure that any loans they take out are unsecured.

When a loan is secured on the home, known as a charge, the lender can threaten repossession if the consumer defaults on the loan. Unfortunately, there is no minimum limit for charging orders, so some people can find that they lose their homes because they failed to pay back relatively minimal amounts. For example, a lady in South-East Wales was given six months to repay a personal loan of £2000 to a debt collection company in order to avoid having her home repossessed. In the light of cases such as this, the Citizen's Advice Bureau is calling for an urgent review of the law regarding Charging Orders.

In the meantime, the best way for consumers to prevent this type of action is to take out loans for people with bad credit which are unsecured. However, with the credit crunch, many lenders are more likely to ask for some form of collateral before providing a loan. Thankfully, there are lenders still willing to provide personal loans without a risk to the home.

Although personal loans are more expensive than secured loans, they do not run the same risks, and are substantially cheaper than accessing finance via a credit card. Some personal loan providers will provide loans for as much as £25,000 with various repayment terms; repayment is usually made on a monthly basis by Direct Debit.

Most loan companies will set down certain stipulations when someone applies for a personal loan, such as, the applicant must:

• Be a UK resident
• Be aged 18 or over
• Be in some form of employment (some companies require full time employment)
• Have been resident in the UK for at least three years
• Have a good credit record

This last stipulation does not apply to all lenders as some companies specialise in providing credit for people with a poor credit history. There are also some companies who ask for a guarantor, who will also have to supply proof of identity, be a UK homeowner, and have a good credit rating. Companies requiring a guarantor are usually those specialising in providing credit for clients with a poor credit history, or those providing credit to someone who is either under the age of 18 or doesn't have a good credit record, because they haven't obtained credit before.

In some cases lenders will insist on securing existing personal loans for bad credit against the client's home, for instance, if the client has defaulted on the loan. However, consumers should take advice from an expert before doing this. Sometimes it is possible to come to a repayment arrangement without the risk of losing the home.

If people are in desperate need of a credit source, they should not rush into securing credit against their home as personal loan providers offer a safer, more readily available alternative.

Identity Theft - Who Is Using Your Credit Card?

Sometimes you get a shock when you open your credit card statement, and it's not just because of the phenomenal amount you spent on clothes last month. Occasionally there may be transactions on your credit card statement that don't look familiar. Sometimes this is a simple banking error, but it's worth paying attention, because you may be a victim of identity theft.

What Is Identity Theft?

Identity theft is the theft of personal information that can be used to identify individuals. It is closely related to identity fraud, which is the use of that information to obtain goods and services by deception. Identity fraud may also mean using that information to create a false identity.

Signs Of Identity Theft

Aside from the appearance of unrecognized transactions on your credit card or bank statements, other signs of identity theft are:

- Getting bills, invoices or receipts for goods or services you haven't ordered - Getting turned down for a credit card or loan in spite of having a good credit rating - Finding that a mobile phone contract has been set up in your name without your knowledge - Receiving letters from solicitors or debt collectors for debts that you know nothing about - Your post goes missing - Someone seems to be messing with your rubbish bags

How Does Identity Theft Happen?

There are many ways in which identity fraudsters can get hold of your personal information. In some cases, this may be through theft of your wallet or purse, burglary of your home, or pilfering from your letterbox. Identity fraudsters look for personal information such as your name, address, date of birth and so on. These can help them to set up new identities and even fraudulent businesses.

Other ways of stealing your identity include:

- Diverting your post through a change of address form - Hacking into your computer to get hold of private information - Monitoring ATM transactions or using special machines to get your PIN number

Fraudsters who get hold of your personal information will find it easy to open bank accounts, get credit card, personal loans, passports, driving licences and benefits in your name. They are unlikely to be strict about making payments on time, so it is your credit rating that will be affected.

How To Protect Against Identity Theft

There are many ways to make it more difficult for identity fraudsters to get hold of your personal information. First of all, get a copy of your personal credit file from time to time. This is inexpensive and you will be able to see if anyone has applied for credit in your name.

Let banks and credit card companies know when you move house and get your mail redirected. This will make it more difficult for someone to steal your letters and identity. At the same time, it's worth checking that no-one is redirecting your mail without your consent.

Keep personal documents in a locked filing cabinet, safe or drawer or in a bank safety deposit box. Receipts should be shredded immediately if you don’t want them. Throwing them away makes it easy for fraudsters to get credit card numbers. If personal documents (passports, driving licences, credit cards, debit cards and so on) are lost or stolen report the loss immediately.

Finally, keep your PIN and your passwords secure. The fewer people who know about them, the less likely they are to get into the wrong hands.

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