The prospects of obtaining a loan, credit card or bank account with adverse credit history are NOT impossible, especially if youre a homeowner. Tenants can also apply for loans from unsecured loan brokers - otherwise referred to as Loan Sharks. It is estimated that, in 2005, over 32 billion of unsecured lending and 8.8 billion of secured loans will be used for debt consolidation. According to research from Datamonitor, more than one in ten consumers has problems meeting their credit card debt repayments. At the end of February 2005 the total UK personal debt was 1,073bn.

The competition between lenders is often fierce, with each one competing to give you great incentives such as a FREE DVD Player or Cash. But how do you know which lender to choose and will your loan application be approved?

Read our 5 Quick Tips on How to Get Credit Online

TWOS COMPANY

1. Joint loan applications are often more successful. If your partner is working full/Part-time consider asking him or her to apply with you, if they can afford the monthly loan repayments? Lenders will consider both your financial incomes and credit history, which could prove favourable.

CAN YOU AFFORD IT?

2. Dont borrow more money than you can afford to repay, always use a loan calculator where possible to work out your monthly repayments. Or ask for a written quotation.

TO BE SECURED OR NOT TO BE

3. Secured loans range from 1000 to 250,000 and theyre a great way of releasing equity on your property. Repayments range from 3-25 years depending on your circumstances and rates can fluctuate. Ccjs, Mortgage Arrears, Defaults and no proof of income are accepted by specialist lenders. APR (Annual Percentage Rates) may be considerably higher if you have adverse credit.

READ THE LABEL

4. Its not unusual for loan companies to charge adverse credit customers a fee upon completion of a loan. Fees vary depending upon the lender and the clients circumstances. Always read the small print before you sign the dotted line.

YOU SHALL GO TO THE BALL

5. Compare lenders before you apply, you may have been declined in the past but this doesnt mean other lenders wont accept you. If in doubt seek independent financial advice, the FSA (Financial Services Authority) has useful links to financial advisors.

There are currently several specialist loan companies listed on http://www.24Hourfinance.co.uk who welcome loan applications from UK Homeowners and Council Tenants regardless of credit problems.