Yes, the better your credit rating the more likely you are to get the lowest interest rates on your loan. For those with a bad credit profile, the higher interest rates reflect the increased risk on the part of the creditors in lending you money.

Interest rates are generally higher on shorter term loans, as there are increased administration costs in setting up the loan.

Yes, you should still be able to borrow money if you have a bad credit rating, but will likely be subject to higher interest rates. If you want to improve your credit rating, it is worth considering a bad credit loan or a credit card for bad credit it is important to obtain advice.

Depending on the amount you are borrowing, and depending on your credit history, you may, though probably will not, be required to secure your loan against your property. If you are required to do this, think carefully before accepting the loan since if you miss repayments, your property may be repossessed.

• Starting up a new business
• Beginning a post-graduate course at a university
• Putting a deposit down for a house

If your financial circumstances improve, you will be able to pay your loan off early, or arrange to change your payment plan in some way. You will need to discuss details of this with your creditors.