There are several reasons why you may have a bad credit rating. If you do have CCJ's or other credit problems, specialist companies will offer you a bad credit loan, although at a higher than average rate.

Having a bad credit rating doesn't mean you're a bad person. It also doesn't necessarily mean you're not financially astute. Your credit rating is based on two types of tests. The first is a credit assessment, usually done by one of two companies: Experian or Equifax. You should get your free Experian credit report online and see the information lenders see. If you are refused credit and you don't know why, you MUST do this - there are plenty of cases of people wrongly losing their credit status because of ex-partners or business complications that are totally unjustified.

Then there's a process called credit scoring; which is matching up your details against the profile of the company lending to you. Different companies want to lend to different people, so just because one loan company won't give you a loan, doesn't mean another one won't. Be sure to shop around.

But even if nobody else will lend to you, because you have credit-based CCJ's or outstanding loan issues, there are a group of companies who specialise in lending to bad credit cases. Be clear that getting a bad credit loan is not the same as loan consolidation. You should consider consolidating your debts to get a lower payment even if you're not in an emergency situation. Equally, bad credit cases can still find loans for other purposes such as going on holiday or building a conservatory. Bad credit loan companies will find you a deal, but you'll pay a higher rate of interest, and usually be required to have other securities. If you've been turned away from other lenders, don't think you have no other options - but expect a bad credit loan to cost more.