Blessing in Disguise for Poor Creditors

By: Shain Johnson

If you want to enjoy your monetary freedom and are not able to generate a loan due to a bad credit score; you have an option that helps you tackle the unwanted financial surprises, and also improve your credit ratings.

Bad credit personal loans allow you to borrow the money as secured and unsecured loan. If you own a house and need a large sum then secured loan is your option. Lenders can lend you money up to 125% of the equity in your property. Another advantage is, you get the money at a cheaper rate of interest. As it will be a big loan you can repay it over a long period of time through monthly installments. However, you have to be a little careful while selecting this type of loan. Since your house is offered as collateral, you can lose it if you are not able to repay the loan.

If you need small amount for small term then you can go for an unsecured loan. Unsecured bad credit personal loan needs no collateral. But you will have to deal with high interest rate, large installments and short repayment period

Lenders offer a variable rate depending on your credit score. Rates vary from 7.9% APR to 19.9% APR. People with serious credit problems end up paying the highest interest rates. However, it is usually 10.9% APR.

Time taken in the amount delivery depends on the type of loan you apply for. Unsecured bad credit personal loan is processed very quickly as it doesn't require any collateral assessment. However in case of secured loan time depends on the verification of your documents and assessment of the collateral you have offered.

Personal Loans
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Personal Loans