Bad Credit Personal Loans: Easy Finance for Poor Creditors

By: Jennifer Morva

Our life demands many things at its every nook and corners. We may be able to fulfill some of the demands but it's hard to satisfy everything, reason being cash deficiency. One of the easiest solutions to overcome this is to apply for bank loan. But what if the person is having bad credit? Most lenders won't grant loan to the bad credit persons. Well here is a golden opportunity for those bad credit people- Bad credit personal loans.

Brief

These loans, as is suggested by name, financially serve all poor creditors including persons suffering from CCJ's (County Court Judgments), bankruptcy, late or deferred repayments etc. With ,the applicant can borrow an amount up to ?75,000. The prompt and timed repayment of these loans can resurrect the borrower's credit rating. They are broadly classified into two sub groups namely secured loans and unsecured loans.

Secured loans

In secured loan the applicant has to keep a house or a piece of land as collateral in order to achieve the loan. Normally the applicant can borrow an amount worth 125% of the value of the collateral. In secured loans the rate of interest charged is also less and repayment tenure is long.

Unsecured loans

The applicant can also achieve loan without keeping any collateral through unsecured loans. Here the rate of interest charged is a bit higher than the secured loan and also the time taken for sanctioning of loan is less compared to other one as no property documents verification is required.

Rate of interest and repayment tenure

The rate of interest charged for bad credit personal loan is between 7.9% APR to 19.9% APR. However the usual rate charged is 10.9% APR. The rate also depends upon whether the applicant has applied for secured or unsecured loans. The repayment tenure ranges between 5 years to 25 years.

Personal Loans
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