How to Counter High Rate of Interest

By: Andrew Baker

People like tenants or non-homeowners face hurdles in taking a loan more if they are having bad credit mentioned in their credit reports. They however are in a better position of availing a loan if they apply to lenders especially providing Bad Credit Unsecured Loans. So if a tenant or non-homeowner could not pay past loans in time, defaulted on payments, has arrears or county court judgments then still he can apply for bad credit unsecured loan. Not only tenants but homeowners are also eligible for bad credit unsecured loan that can be availed for any purpose like home improvements, buying a car, wedding, and holiday tour or for debt consolidation purpose.

Bad credit seldom comes in the way of bad credit unsecured loan approval.

This is because the lender makes it sure that the borrower has a convincing repayment plan in place backed by sound earnings and bank statements. This is sole basis of approving the loan without taking any security from the borrower. So keep all documents ready for showing them to the lender. Also make sure that you know your credit score. Usually a credit score below 600 is indicative of bad credit. But you must also note that lenders determine interest rate on credit score. Usually unsecured loans carry higher interest rate and bad credit borrowers are charged even higher rate depending on the credit score. The lower the credit score goes the higher will be interest rate on it.

For countering very high rate of interest on bad credit unsecured loan, take two steps. First pay off easy debts and wait for some months so that your credit score improves dramatically and then only you should be applying for the loan. Secondly, you must take rate quotes of different lenders and compare them for finding which lender is offering comparatively lower rate for you. We are sure that if you make adequate efforts, you can locate a suitable Bad Credit Unsecured Loans deal.

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