Cheap Secured Loans
The mysteries of credit scoring explained
Cheap secured loans are offered to people with a good credit rating, which tells the lender that the applicant is a safe bet when it comes to money. Credit scoring is a very simple system, and if you feel that you've been unfairly labelled as a bad risk you can get your rating amended.
Cheap secured loans are given to people that lenders see as a safe bet. Credit scoring is used by the majority of lenders, and it's a simple formula that calculates how risky someone's application is. A credit score is simply a calculation that compares your credit file against thousands of other people's credit histories, and which attempts to predict whether you're likely to be a dodgy customer.
If you've got a good credit rating but find that you're rejected for cheap secured loans, you may be trying to borrow too much money – responsible lenders won't let you borrow more than they think you can afford to repay – or there may be a mistake on your credit record. Credit ratings are handled by two main companies: Equifax in Glasgow, and Experian in Nottingham. You can write to these firms and get a copy of your credit history, and if there are errors the firms must correct them.
Don't assume that if you've been rejected for cheap secured loans that it's because of errors, though: the majority of credit data is accurate. Lenders may decide you're a bad risk because you've just changed jobs, or someone else in your household might be a financial disaster area.
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