Zoom Finance Blog

How do today’s high interest rates affect you getting a loan?

Securing a loan with bad credit or no deposit can be challenging, especially in a financial landscape influenced by current interest rates and the rising cost of living. 

As interest rates fluctuate, lenders become more cautious, making it crucial for individuals with less-than-stellar credit histories to navigate the borrowing process strategically.

Current interest rates affect loan approvals

The prevailing interest rates play a pivotal role in loan approvals. Higher rates can lead to increased scrutiny by lenders, making it imperative for borrowers to demonstrate their financial responsibility. 

To enhance the likelihood of securing a loan, individuals with bad credit should consider exploring alternative lending options, such as utilising a personal loan broker, like Zoom Car Loans. We do more than just car loans!

Using a broker who specialises in obtaining bad credit loans greatly increases your chances of securing a loan especially during difficult times such as we are now facing.  Our team of highly skilled and experienced brokers are up to date with what the different lenders are looking for.

Improve your credit score

In the face of rising interest rates and the escalating cost of living, improving one’s credit score becomes paramount. Some things you can do to contribute to a more favorable credit profile are:

  • Timely payments on existing debts, 
  • Addressing outstanding issues on credit reports, and 
  • Showcasing stable income.

Obtaining a loan with bad credit requires careful consideration of the current interest rate environment and proactive steps to improve one’s financial standing. 

By exploring alternative lenders, working on credit improvement, and leveraging additional support from a personal loan broker, individuals can enhance their chances of successfully securing a loan despite challenging credit circumstances.

To find out more about how you can secure a loan when you have a bad credit rating contact Zoom Car Loans.