Yes.....The terms you are offered, however, will vary according to how big a risk you appear to be. If you have CCJs, Defaults or Arrears, you can expect to pay a higher rate of interest.

Generally speaking, you will find it far easier to obtain a secured loan rather than an unsecured loan. In the former, the lender's risk is limited by the security, normally property, on which he is lending. In the latter, the lender's risk is largely determined by the ability and willingness of the borrower to repay.

The vast majority of lenders use one of two major credit reference companies, Experian and Equifax, in deciding whether to grant credit. These companies hold credit files on nearly all of the adult population of Britain so if you, or someone at your address has defaulted, has a CCJ or otherwise has had financial problems, then it's going to be on record. Your credit record is usually searched every time you apply for a loan, hire purchase, store credit or any other form of borrowing.

So your credit history affects the terms you are offered or whether you can obtain a loan at all. The High Street banks and Building Societies tend to be very conservative in their lending policies and may turn down applications from anyone who has experienced significant credit problems. However, there are many well established and reputable financial services companies who will offer loans and mortgages based on your present circumstances rather than your history.

There are also many brokers or intermediaries who advertise a specialization in helping people with a bad credit record. However, be careful as many charge a fee just to try to obtain credit for you without any guarantee of success. We would advise that you only deal with reputable brokers who are members of well-known trade associations, such as the Consumer Credit Trade Association. Brokers who specialize in secured loans may describe themselves as FISA registered, meaning that they must follow the code of practice set by the Finance Industry Standards Association.