If you are in the UK, need to get your hands on a loan, but if you’re not a home owner and have a bad credit rating then you will be finding that the options open to you are fairly restricted. These days most lenders are looking for you to have some sort of collateral if they are going to hand over their cash. If you own your own home that means you can give the lender an assurance that you will pay back the money because they know that if you fail to do so they can take your home from you to make up the money you have failed to repay. This has its advantages and disadvantages, obviously you could lose your home for the sake of getting some credit, but if you are careful and only take out what you are sure you can repay then you can get the best deals on any loans you take out.

For non-homeowners there are products such as payday cash advances which are unsecured products, but that only allow you to access small amounts of cash, and the lender will charge huge interest rates to compensate for the risk they are taking. Logbook loans are another option if you have a vehicle to use as collateral but you can lose your car if you fall behind in repayments and the interest rates are once again on the high side.

Bad credit tenant loans are where you need to get your money if you rent your property as they don’t require any collateral, and you can usually get a big enough loan for most uses. You will obviously find that the cost of these loans is going to be higher than a secured loan, but they are much more affordable than something like a payday loan so you should find that they fit your needs quite well. With that said, its sensible to only use any type of credit product for purchases that you absolutely have to make. Using them to buy a new wardrobe is probably not the best idea.