For many people having a credit card is a great way to manage their spending, they also find it easier than having to carry cash around with them. If used correctly a credit card is a great way to build up a good credit record. That is the amount spent on the card each month is paid off in full each month, with the exception of those cards that have introductory 0% interest rates (then the amount spent should e cleared off at the end of the introductory period.)
However for some people it is not always possible to clear off the full amount each month, and they only make the minimum payments each month, this can lead to all sorts of issues. There are some cards where the minimum payment each month does not cover the amount of interest accrued on the debt and so the debt just keeps on increasing, and eventually the person cannot afford to even make the minimum payment.
Missing a payment on your credit card may not seem to be such a big deal to you at the time, especially if next month you do make the full payment. However even just one missed payment can have a significantly bad affect on your credit rating, such that next time you apply for new credit you will not be able to get the credit at a low rate of interest or worse still not get the credit at all.
But all is not lost if you are in this situation as there are plenty of companies out there that are willing to help you. These companies provide what are called bad credit loans, and while the interest rate will be higher than from a traditional lender, they do not look at your credit history / rating but rather at your current situation and whether you can afford to make the repayments.
If you decide that this is a way forward for you then follow some simple checks before you take a loan out with one of these companies.
1 work out exactly how much you need to borrow and do not be tempted to borrow more than this.
2 Stop visiting the traditional lenders for a loan as each time they check your credit rating can have a negative impact on your credit rating.
3 Check that the company is regulated by the financial authorities in your country and that they are specialist in bad credit loans.
4 Get quotations from several companies and let them know that you are doing so.
5 Make sure that you meet all the legal requirements for the loan before applying e.g. you are above the minimum age which in most countries is 21.
6 Once you have the loan make all the repayment on time and in full each month.
By following the above steps you should be able to get yourself a bad credit loan to meet your needs at the best possible rate of interest, whilst at the same time repairing you damage credit record.