One of the main things that all lenders will check prior to approving any form of finance is your credit score. What defines a good or bad credit score? And can you get an unsecured personal loan if you have poor credit?

Firstly let’s look at the scoring system. You are able to obtain a free copy of your credit report once every 12 months. You can simply request this from one of the 3 credit bureaus, Experian, Equifax or TransUnion. All your different forms of credit will be listed on your report and you will be given an overall score.

A score of between 350 - 619 will put you in the poor credit category. A score between 620 and 659, you will be considered adequate. Once you get to the 660 - 749 range, your score is considered good. Anything above 750 will mean that you have a fantastic financial history and will pretty much be approved for any form of credit.

For those of you looking to get an unsecured personal loan with poor credit, you may wish to look at the “non-financial” aspects of your credit rating. Your score is not merely calculated on your credit, loans and mortgages, but on many other things. These will include how long you have been at your current address or working for your current employer. Any hire purchase, rental or leasing agreements will also have an affect.

If you have been working in your current job for over 2 years or living at your current address for the same amount of time, this provides some form of stability. Always make sure that your report is fully updated with any changes that you have made.

Your debt to income ratio is also a very important factor towards your creditworthiness. If you have recently received a pay rise, once again make sure that the relevant authorities are aware.

Finally are there any facts and figures on your report that you don’t understand or you were not aware of? Take this opportunity to contact the lender in question and find out some specific details. There are many people who have been labelled as someone with poor credit, when in actual fact there is a simple mistake on their credit report.

There are a number of specialized lenders who will give you an unsecured personal loan with poor credit. However, my initial advice to you would be to always try and improve your credit score first.

Do you desperately need to know how to find an Unsecured Personal Loan For Poor Credit?

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