If your credit history is less than perfect, then getting a loan from a high street lender can be very difficult in the present economic conditions.
Bad credit history secured loans are the easiest to get qualified for in this kind of situation since the lenders would be more willing to offer the funds in return of collateral. Any asset like home, car or other valuable item can be used as asset for bad credit secured loans.
Features of bad credit secured loans
The main feature of bad credit secured loans is that the amount that you borrow will be secured against your home or any other asset that is acceptable to the loan company. Even though the interest rate of these loans is higher than the loans available to good credit borrowers, when compared to unsecured loans the interest is still lower.
These loans are available to borrowers with missed payments, late payments, CCJs and even arrears. The amount of loan that can be borrowed with bad credit secured loans depends on the policy of the lenders but it also depends on the available home equity on your property and other terms and conditions. The repayment term is generally higher and it can be anywhere from 5 years to 20 years, depending on the amount that you borrow.
While most borrowers may think that they would not have many choices available because of their bad credit history, the fact is that there are still several lenders in UK that do offer options to their borrowers. An estimated one in five people today have bad credit in UK and so the loan companies offer bad credit history secured loans in order to cater to the needs of these people. You will have to remember that regular payments are very important when you apply for the loan since your home is at risk of repossession.
Finding bad credit history secured loans
Bad credit history secured loans are offered by lenders like Nemo Personal Finance, Blackhorse Personal Finance, Link Finance etc. In order to find the right lender and a good deal, you will first have to think about the amount you wish to borrow, the repayment term that you are most comfortable with and the monthly instalment that you can borrow. Look for a loan deal that fits into all of these requirements so that you can have a loan product that suits your needs.