What is a Bad Credit Loan?
By John Mussi
A Bad Credit loan is a personal loan for people with bad credit rating
because a bad credit rating or credit history can make your life a misery.
However created, your past record of County Court Judgements, mortgage or
other loan arrears can live on to deny you access to finance that other
people regard as normal.
Bad credit is where a borrower has a credit record which discloses a
default on the repayment of a debt or loan facility. Sometimes the existence
of a county court judgement does not mean that the borrower is a bad payer
as the bill or debt in question may be subject to a genuine dispute. However
if the record shows a number of County Court Judgements this a warning sign
to any financial institution of a possible bad credit.
If you have a bad credit rating or adverse credit rating you may find it
difficult to obtain a standard personal loan. These types of loans are also
known as poor credit loans.
A Bad Credit loan is a personal loan for people with bad credit which is
secured on your home. It frees up the spare capital (or equity) in your home
for you to use on whatever you want.
A Bad Credit loan is ideal if you want to raise a large amount and have a
poor credit history – you may be able to get a Bad Credit loan even when you
have been turned down for an unsecured loan.
If you are a home owner with equity in your property, a Bad Credit loan can
bring that normality back to your life.
With a Bad Credit loan you can borrow from £5,000 to £75,000 and up to 125%
of your property value in some cases. Bad Credit loans secured on property
can be repaid over a period of between 5 years and 25 years .
A Bad Credit loan can be used for any purpose such as; home improvements
like a new kitchen or bathroom, that once-in-a-lifetime holiday, a dream car
or repaying debts to reduce your monthly outgoings to a more manageable
Bad Credit loans rates are variable, depending on status. Generally speaking
if a loan is to be given to a bad credit the interest rate will be higher
and an up front fee may also be charged. Monthly repayments will depend on
the amount borrowed term.
Some lenders specialise in adverse credit because they can charge high fees
and a higher interest rate than normal and if the borrower is now in a good
financial position the risk rating of the loan may be as good as someone who
has no record of defaults.
However most banks and financial institutions will turn down a loan
application if there is a history of bad payment or insist that it is
secured on a property.
You may freely reprint this article provided the author's biography remains
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find
the best available loans via the http://www.directonlineloans.co.uk website.
Article Source: http://EzineArticles.com/