If you have a poor credit record, then this means that your borrowing options will be limited. You may still be able to get loans from some high street banks but you will be limited in how much you can borrow and you may be charged higher amounts of interest. You will have the option of no credit loans which will tend to be for smaller amounts of money. It is worth thinking hard about whether borrowing is a good idea.

Is it necessary to borrow?

Whether you have a poor credit record or a good one, it is always a good idea to think about whether you really need the loan. This is because there are costs to taking out a loan and you only want to pay these if it is totally necessary. It is a good idea to calculate how much the loan will actually cost as this will enable you to decide whether you think that it is worth it. Consider what you are buying with the loan and whether you think it is worth paying this extra money for it.

It is also worth thinking about the item you are buying with the loan. You need to think about whether you really need the item. If it is an item that you could do without, then perhaps it is not worth getting a loan out just for it. However, if it is an item that you really need then it might be worth paying the extra money to get it.

Good vs bad debt

It is also worth understanding good versus bad debt. Good debt is a loan which you can afford to repay and that you have researched to ensure that it is the right loan for your needs and offers good value for money. You need to make sure that any loan you take out fulfils these criteria. A bad loan is one that you take out without being able to afford the repayments, that is unnecessarily expensive and that does not suit your needs. In order to make sure that you are getting a good loan, it will be necessary to some research. You will need to know about different loan types, about how much they cost and how much the repayments are as well as which lenders offer good value. This will take time to research but it could make a significant difference to your borrowing experience if you find the right loan at a good price.

Credit record and borrowing

If you have a poor credit record then you will have less loans to choose form and this could mean that you will not be able to get such good value for money form the loan that you take out.

It is also wise to think about why you have a poor credit record. If it is because you have struggled with loan repayments before then you need to think about whether you think that you will be able to repay this loan. Think about whether anything has changed that will make you more able to repay compared with before.

It is a personal decision as only you will know whether you feel you will be able to repay the loan and whether the loan is necessary in the first place. It is worth a lot of thought though as if you make the wring decision it could mean that you will end up struggling to repay a loan or worse having things repossessed because you cannot keep up with the repayments and you do not want this to happen.