The past few years have been pretty draining financially on all of us. The housing market is in decline and property value has reduced astronomically. This can often leave you in a negative equity situation, where your mortgage is actually worth more than the value of your home! Jobs appear to be scare and unemployment is rising. There seems to be less money about and it doesn’t go as far as it used to!

This leaves many of us falling into the trap of poor or adverse credit. Usually this is also when you are in desperate need of money the most. An urgent repair needed at home, some larger than expected bills and don’t even get me started on medical and hospital costs! It seems your only option is to try and track down a guaranteed bad credit loan. With the loan, you can cover whatever unexpected costs you have and give yourself some much need breathing space.

There are plenty of ads, I’m sure you see them everyday. Guaranteed Bad Credit Loans offered in newspaper ads and in magazines. Each commercial break seems to be flooded with adverts for people struggling with their finances and lenders who are willing to give loans to people with bad credit.

However, upon closer inspection things are not quite as they seem. Although there are literally thousands of legitimate, professional lenders who can offer Guaranteed Bad Credit Loans, there are equally numerous lenders who leave a lot to be desired.

I would always urge you to fully understand exactly what you are committing to prior to signing any agreement. I have seen cases of loans being offered to people with bad credit and the interest charges seemed unbelievable. Often to secure a bad credit loan, you may find that you have pay back in excess of double or treble your loan amount in a very short space of time!

Additionally some lenders only offer these type of loans with an up-front charge and then subsequent charges throughout the year. If you’re not careful, you can actually end up in worse financial trouble than when you first started.

A good way to gauge how good an offer is – You should start by researching first. Find out how much a standard loan would cost you if you had great credit. You can get hold of preliminary offers from some high street lenders. You could get a rough estimate from a finance website. Perhaps even ring one of the offers you come across on TV or in a magazine.

If you need a loan with bad credit, you can expect to be charged slightly more. Let’s face facts, any lender will view someone with a poor credit rating as a higher risk that someone who has a great credit score. However, the cost to you should not be that much more.

Due to the current economic climate, there are more and more lenders in the marketplace, who can offer poor credit loans. Many of these lenders realise that you shouldn’t be continually punished for having a bad credit rating. They can offer you guaranteed bad credit loans at a reasonable price and also help to improve your credit rating along the way.