By Charlie Brown

If you want to join the trading world, then you need a significant amount of capital, which is often difficult to get if you have bad credit. Trading is a great way to make money and expand your financial portfolio. You can trade in stocks and commodities to make more money. Bad credit is a limiting factor for many people because high street banks and some lenders are not willing to take the risk of issuing loans to people with bad credit. However, there are some lenders who specialize in giving loans for bad credit.

You probably have bad credit if you have experienced any of the following problems:

  • Declined loan applications with banks
  • County court judgments for debt
  • Arrears and defaulted payments
  • Bankruptcy
  • Individual voluntary arrangement to avoid bankruptcy
  • Bad credit history
  • No credit history
  • Self-employed with no accounts and no proof of income
  • Part time employment

These are the common credit problems that will probably prevent you access to the financing you need to start your trading business.

Borrowing options

There is no single type of bad credit loan that can deal with all the problems mentioned above. However, there are ranges of loans that can accommodate your form of impaired credit. Most bad credit loans often have higher costs in interest rates or require some form of security. Your personal circumstances and credit status will determine your borrowing options. First, you should know your credit rating then start shopping around for different borrowing options.

1. Guarantor loans

You can take a guarantor loan that you can pay over the long term. These loans are specifically designed for people with poor credit. You need to find a guarantor who will stand in to pay the loan if you fail to pay the loan yourself. Many loan options are available for guarantor loans.

2. Payday loans

You can also choose payday loans from trusted lenders. Payday loans are short-term options for people looking for financing in between paychecks. You will be required to pay the loan with your next paycheck. You can also agree to pay the loan in installments with subsequent paychecks. This type of loan greatly relies on personal responsibility; therefore, you need to show the lender that you are dedicated to repaying the loan.

3. Personal loans for bad credit

You can also get unsecured personal loans to pay over a long-term period. These loans are available for individuals with less than perfect credit and no guarantors are required. There are various lenders available to give such loans.

4. Homeowner and logbook loans

You can also use your home or car to secure a loan if you have bad credit. You should have full ownership of the car or house to qualify for this loan and you can choose short term or long-term repayment periods. Some logbook loans allow you to repay early with no penalties so you can get back the vehicle’s logbook.

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