Compare Bad Credit Loans
If you need to borrow money but have a poor credit score bad credit loans could be available to you.
What is a bad credit loan?
Over the past few years it has become increasingly difficult to borrow money. Even if you have a good credit history it can still be difficult to obtain a loan from a bank. Many banks are unwilling to lend to people with bad, little or no credit because they consider them to more of a risk to lend money to. So if you do have bad credit or have been refused a loan elsewhere for any number of reasons what are your options? Due to this issue there are now a wider range of loans for people with bad credit. With so many bad credit loans available make sure you take the time to research.
Secured or Unsecured Bad Credit Loans
A lot of bad credit loans are secured loans. This means that you will have to offer some sort of asset as collateral for the security of the loan which you borrow. In most cases the asset used will need to be your house but this can vary. If you are looking to borrow a considerable sum of money and you have bad credit the lender will almost certainly stipulate that the loan needs to be secured. Unsecured bad credit loans are unusual because of the risk a lender takes in lending to someone with bad credit. Realistically the interest on an unsecured bad credit loan is going to be very high and probably more like a payday loan so be careful. Before taking out a bad credit loan think about whether a secured or unsecured loan is better suited to you and your financial history.
Watch out for the Interest Rates
Interest on bad credit loans is likely to be higher than that of a normal bank loan but if the loan is secured make sure that you compare the interest rates with other companies to make sure that you are getting a good rate on your bad credit loan. There is no such thing as a bad credit loan no credit check. All legitimate lenders will perform some level of credit check in order to determine whether or not they will lend to you. You will find that generally speaking the exact extent of your credit score will be used to determine exactly how much money you can borrow.
Do your Research
If you are getting a bad credit loan make sure that your shop around. Different lenders will offer different rates and some will be better than others. Work out exactly what you need to borrow and try not to go over this amount. Some Bad Credit lenders will lend up to £50,000 but payments on this sort of loan can be very expensive. Work out exactly how much each repayment on your loan will be and make sure that you can afford it. Bad Credit loans are serious financial products and defaulting on these loans will not only damage your credit rating even further, you could risk losing your home. Make sure you read the terms and conditions of any loan thoroughly. It is also worth seeking professional financial advice so that you understand the finer details of your loan.
05 February 2013
Which Way to Pay
If you are having trouble getting credit from the banks then remember that these days this is a common problem.
27 September 2012 11:00am
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30 July 2012 17:30
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New Product! Now available at Which Way To Pay, Loan Solutions offer Bad Credit Loans, Payday Loans, Consolidation Loans, Unsecured Loans and Secured Loans. Whatever your financial requirements they can help find the one solution that’s right for you!
25 June 2012 14:30
Got a Bad Credit rating and worried about not being able to get a loan? Well there is no need to panic, these days there are many of you with bad credit histories so there is now a financial product available to help you ensure a loan. A bad credit loans are around to accommodate those of you with negative credit history.
10 May 2012 11:00am
People with bad credit will often struggle to get approved for the money they want or need through most banks because are unwilling to lend to people with any less than a perfect financial past. However, there are bad credit loans special loans offered to those who have been turned away by conventional lenders because of their credit history.