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Bad Credit: How to get a small loan with bad credit

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    If I have bad credit and can't borrow any money from banks or get any credit cards, are there any other ways I can safely get a loan without paying huge interest?
    I only want about 1000 pounds...
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    Hi,

    The first thing to do is find out why you have a bad credit rating. Sometime bad credit can be caused for reasons that aren't your fault or are easily fixable. For example if someone else in your block of flats or a previous tenant in your flat had bad credit.

    By clicking on one of the experian links on this site you can get a free 30 day trial of their credit checking service which should tell you everything you need to know.

    If you can't fix your credit rating, there are still options that might be open to you. If you are a home owner and the property has gone up in value since you bought it you should be able to apply for a further advance from the mortgage lender for the money you need.

    Some of the bad credit personal loans on offer are not too much higher than than those on offer for standard loans. For example, there is a company called Picture loans offering a rate of 7.9%. It really depends on what you consider huge interest - do you have an upper limit in mind? Also, do you have a view on how quickly you will repay the loan as this can make a difference to your options?

    If neither of the above work for you then you could also check out www.zopa.com. This is a service which essentially cuts out the banks. People with spare money are matched with people who need money at an agreed rate of interest. A bit like ebay for lending. It may all sound a bit out there, but I think it is regulated by the FSA in the same way as a normal bank.

    Anyway, hope this helps some. Good luck and let us know how you get on.

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