With the world still suffering a little from a hangover from the last credit crunch in 2008, credit availability is still not at its premium level. Things are starting to look better though, with lending houses starting to reopen their doors to new customers after a long time with their hatches well and truly battened down. Many consumers however, have been left with what’s commonly referred to as a “bad” credit rating or “poor” credit score – terms which are so often associated with an unsavory feeling. This is simply not the case, and a misnomer as large as this needs to be addressed. Here, we do just that with some good advice on where to get a loan with bad credit.

These days, every little bit of credit, every finance deal, every phone contract and even pay as you go sim cards can be subject to the ever-daunting credit check, a process whereby the lender submits a query with a records bureau such as Equifax or Experian in order to locate information about your general health in terms of finance. It’s understandable that creditors want to be as certain as possible about any financial risks they take, and with watchdogs like Experian and Equifax on their side, it’s becoming increasingly hard to get credit when it’s needed. However, the outlook is NOT as bleak as it sounds.

There are companies and organizations who exist solely to assist people for whom luck has not been at a premium, for whom personal circumstances have inextricably altered or even ruined their ability to be trusted by a lender. These companies are known as “bad credit lenders” and no matter how ominous that term may seem, it’s worth noting that they, like any other company, are simply making money from their own legitimate niche. That’s not to say that every single one is totally trustworthy; there are, like with any market, a few bad pennies (excuse the mild pun.)

But how do you know if you have bad credit? For most, this particular piece of unwelcome news arrives when they are turned down for a loan or a contract more than once. This prompts them to try and find out why and inevitably leads them to a credit checking bureau like Equifax or Experian. Companies like this will display your credit “score”, an overall number that’s determined by your financial habits such as paying back loans on time, meeting financial agreements regularly and punctually and the like.

At this point, once a person knows their score they can start to take action. To rebuild credit, you need to simply get your finances back under control, to demonstrate to creditors that you can meet monthly financial obligations. Further to this, to increase your credit score over a period of time, you can simply head out to a bad credit company and attempt to secure finance there. Should you manage, it’s worth trying to consolidate all your repayments into one manageable monthly chunk, which demonstrates your commitment to your finances as well as your trustworthiness to lenders in the future.