The rise in living standards of people has left its deep impression on the rise in needs and demands. Moreover, there are times when a person has to encounter number of emergencies demanding financial support, but due to bad credit score a person is always pulled back. The lenders also feel insecure in providing any kind of credit help without carrying good credit score.
Thus, by not letting your bad credit score interrupting your needs, additional financial support can easily be taken in form of bad credit loans.
These are especially designed for those people who are holding bad credit profile and are unable to borrow any amount from the lenders due to it. Since, the amount is provided with poor credit score, so here, the determining factor is the history of your past county court judgments, closures, bankruptcy, missed payments, defaults or arrears. The record of above mentioned things are just like a proof of your certainty.
bad credit loans are broadly classified into two groups and that is secured and unsecured. Since, these are better known as personal loans, so it is divided into two groups. With secured ones, the borrower is required to pledge an asset or property as a collateral and could attain lower interest rates. Whereas, with unsecured ones the borrower is not required to pledge any collateral. But, on the other hand, the borrower would have to face higher interest. However, with such a rising competition in the market, reaching to the most competitive lender providing reasonable rates becomes much easier.
However, in order to get through the approval process of bad credit loans, the borrower has to qualify the eligibility criteria first which is mainly decided upon certain grounds. They are as follows:
- The applicant should be above the age group of 18 years old.
- The applicant should have a regular source of income and should carry definite income.
- The applicant should be the domiciled of the UK.
- The applicant should also provide a valid checking account in which the lender could directly deposit the amount within 24 hrs of an application.
Therefore, a borrower carrying all the above mentioned criteria becomes legally eligible for the desired amount.
One thing that every borrower needs to take under consideration is that bad credit loans cater higher interest rates. Nevertheless, the amount provided by it is generally classified in two parts. Such as:
- Firstly, a borrower going for the secured form of borrowing could borrow an amount ranging between 5,000 to 75,000 over a repayment period of 5 " 25 years.
- Secondly, the borrower heading for an unsecured form of borrowing could borrow an amount ranging from 1,000 to 25,000 over a period of 1 " 10 years.
Therefore, bad credit loans can be a big relief for the bad credit holders as they can meet purposes like meeting wedding purpose, purchasing a new car or going for the home improvement plan.
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Leave Your Poor Credit Behind And Start a Fresh Budget With Bad Credit Loans
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