Over the last couple of years there has been a steady increase in the number of new self contained firms who are offering bad credit loans. This is despite the worst economic down turn since world war two. This down turn has brought about many changes to the main stream banking / financial systems around the world with new rules being introduced in the USA and the UK to regulate the financial markets in a way as is hoped to prevent this from happening again. The down turn has already seen the mainstream banking system remove a number of credit products from the market and a tightening of the criteria used to decide on lending.
These new firms that are appearing generally advertise via the internet and can offer an alternative to people who are finding the mainstream do not want to know them. These bad credit loans companies offer a variety of financial products such as specialised loans, credit cards and various types of investments. As the name suggests they are aimed at people who already have a bad credit history however are they a good idea?
There are two view points on this, the first is that offering credit to someone who is already a bad credit risk is increasing the chances of that person spiralling into a financial mess and there for should not be given. After all wasn’t the lack of control of easy to get credit the cause of the problems was are facing now.
The other point of view is that not everyone who has a bad credit rating is at risk of getting stuck in a debt ridden spiral, and that by offering bad credit loans these new companies are helping to prevent even more people ending up in severe financial difficulties and that they can help these people to recover their credit rating. After all it is relatively easy to get a bad credit score.