No Status Loans For Everyone

There are any number of reasons your credit rating may be non status. Perhaps you're self-employed with less than three years of accounts to show your history, or work on commission with a low base rate of pay - but marvelous commissions. When you have no way of proving or verifying your income, finance companies can be understandably leery about loaning money to you.

Luckily, there are companies out there who understand that not everyone is employed by a company that hands out a standard Friday paycheck. Those companies specialize in making 'non status loans' for everything from automobile purchases to home mortgages. When you're looking for a non status loan, there are a number of things you should keep in mind.

A non status loan is for you if:

• You work in a job that makes it difficult to verify regular income.
• You have past adverse credit that you're trying to put behind you
• You have past CCJs against you.
• Mainstream lenders have turned you down for conventional loans.
• You want to establish a good credit rating but can't qualify for a mainstream loan because you can't verify your income.
• You want to repair past bad credit, but can't secure a mainstream loan.

What to Look For in a Non Status Loan

Because lenders who specialize in non status loans are taking a bigger risk when they lend money to someone who doesn't have an established repayment history, or who has no proof of income, they often charge higher interest rates than conventional lenders. This doesn't mean that you should accept a loan with outrageous interest rates that smack of usury. You can usually find a non status loan that's only a few points above the interest charged on a standard, mainstream loan.

If possible, seek out a loan that doesn't carry a prepayment penalty. Since you'll be paying a higher than normal interest rate on a non-status loan, you'll want to get it paid off as quickly as possible. A common strategy - and one that works well - is to take out a non-status loan with a higher interest rate, and get those payments made on time and in full for a year to two years. By the time you've put in two years of regular, steady payments on your non-status loan, you'll have improved your credit score considerably.