Bad Credit Loans Having a bad credit rating may put you off of applying for a loan as you might assume that you will be turned down for any type of loan. However, this disadvantage can sometimes work in your favour as there are many specialised loan companies that will only lend to borrowers who only have a poor credit history. A bad credit rating can have been accumulated over a number of years where you have been declared bankrupt or had county court judgements lodged against you.

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A bad credit loan can be in either unsecured or secured form. The unsecured loan is a loan that is issued by the lender that isn’t secured against any form of your property or assets. This means the lender will have no rights over your home should you fail to repay the loan back as agreed. Therefore, you don’t have to risk putting up your properties as collateral in order for the loan to be agreed. A secured loan is exactly the opposite, the loan will have to be secured against a form of your property in order for the lender to agree to loan you the money. Both types of loan can be used to fund a variety of things including paying for essential home improvements, a new car or even a dream holiday. However, both these types of loans can also be used for consolidating any debts that you may have outstanding. This essentially means that instead of having a large number of costly monthly repayments to make, you will only have one more affordable repayment to make to your chosen lender.

Applicants with a poor credit rating often have county court judgements against them where they have failed to pay previous debt or have some type of payment arrears. If your credit history fits into this category then this type of loan is marketed specifically with you in mind. You shouldn’t assume that your bad credit puts you at a disadvantage when applying for a loan as many specialised loan companies have now realised that this particular financial sector is growing and the needs are there for this type of service.

When applying for a bad credit loan, a specialised loan company should be able to help you. These companies have specifically set up their businesses through the internet to enhance the accessibility for this type of loan. It’s here that you will be able to research information from a number of companies who are willing to lend to people with a poor credit history. If the amount of information on offer is daunting, it can be advantageous to contact an independent financial advisor who will be able to provide expert advice in this area. However, due to the nature of this type of loan, it can often be better to use the more specialised loan companies as they will be able to offer a more in-depth service as they are specialists in this area. When researching for this type of loan, it is best for you to compare which lenders are willing to offer you the best deal as it could mean that you are able to get lower interest rates. When you have decided on your chosen lender, your credit file will always be checked using the relevant lenders credit rating system.

You can borrow from £1000.00 to in excess of £25,000.00 depending on your circumstances. The amount you are able to borrow will depend on you current financial situation, the lender will calculate this against your current debts are and your ability to meet the monthly repayments. The repayment period will be set between you and the lender and this usually runs from 1 to 5 years depending on lender.

Interest rates on a bad credit loans are quoted in the form an “APR” (Annual Percentage Rate). The lenders’ APR on unsecured loans tend to be slightly higher than secured loans due the greater risk to the lender should you fail to repay the loan. The lender will not have any formal assets in the form of property to re-possess should you fail to make the monthly payments.