A poor credit score in UK means a bad credit history a person have, which is rated according to its severity, by consumer credit information agencies like Experian and Equifax. All the information regarding the credit history of people in UK are available with these agencies. Only after enquiring the credit score with these agencies, any finance company would offer a loan to a person. The amount of loan sanctioned and interest rate to be paid would be decided by the lenders based on the credit score.

One in four of the people in UK are having a poor credit score. This might be because of many reasons like, county court judgments, arrears in mortgage repayments, defaulted or missed payment of any loan previously taken, individual voluntary agreements, bankruptcy etc. Joblessness, grief or a divorce could also result in poor credit score (Credit cards for bad credit, 2007). Late payment of a bill would be recorded in the file for three years and bankruptcy and CCJ’s for six years after which it would not be counted. Thus a person having a poor credit score could gradually improve his score by repaying the loans without any fault continuously for a particular period of time depending on his credit history.

Thus a poor credit score denotes a poor credit history of a person. Such information regarding each and every person is available with credit recording agencies. Only after a credit check with these agencies, the lenders would give loan to a person. Therefore a poor credit score for a person would mean a greater difficulty in getting loan and higher interest rate he has to pay.

Private lenders are individuals who are having money with them and are interested in investing it with safety for a good return. They are known for their easy procedures and promptness with which they approve loans. There are many private lenders in UK. However it is the duty of the borrower to conduct a research from his side to find out a trustworthy private lender. They provide more amount as loan compared to bank but usually require a collateral or credit check for loan to be approved. (Take your pick from the list of private personal loan lenders, 2007). Even in the condition of bankruptcy a private lender could offer a loan, provided it would be having a high interest rate. At this stage, it would be better for the borrower to get loan from private lender for a short period and try to repair his credit record, so that he could go for a loan with low interest rate later. 

There are many advantages in borrowing from private lenders. They would help the borrower to buy government redo homes, by giving the pre-qualifying letter, which the borrower could produce before the agent for the purchase. This has resulted in an increase in the purchase of home in the last two years (Housing associations and the private lender, 2007). They provide loan for less down payment. If the borrower is a real estate agent and his name is the good book of the private lenders, then he would never be out of fund.

Thus trustworthy private lenders of UK are always ready to help any body that is having a good credit record and good repayment ability. Once the borrower succeeds in winning the trust of one private lender others would also come to him for lending money, and this has resulted in a boom in the real estate business recent years.