Poor Credit Secured Loan

By: Carmen Cortez

With so many lenders in the finance market, it has definitely brought along some positive changes. This has brought along a dramatic change in the behavioral pattern of the lenders. It means now a borrower with a flawed credit status can avail financial help from lenders. if the borrower is an asset owner and do not have any issue to pledge it as collateral, he can easily access poor credit secured loans.

Poor credit secured loans can be used to meet various personal needs like home improvement, purchasing a car, wedding, vacations and even paying off all the debts. These loans are available to borrowers with credit history problems like CCJs, IVA, arrears etc against their name. Lenders readily approve the loan amount without any fuss because they have an asset to bank upon in case of non repayment by the borrower.

Under these loan schemes, borrower can avail amount in the range of ?5000-?75000. The amount approved is actually based on the equity value of collateral. Although lenders tend to charge a very high interest rate because of the blemished credit history, by pledging the collateral borrower can avail these loans at very competitive rates. But a borrower with a low credit score will have to pay a high rate of interest. That's why it is preferable to apply for the loans by paying off some debts which will result in gaining competitive rates.

Another added benefit of availing the loans comes in the form of repayment duration. Depending on the prevailing circumstances, borrower can choose the duration of repayment in between 5-25 years.

Online lenders are also a major source of poor credit secured loans. These lenders offer these loans at comparatively low rates as compared to traditional lenders like banks and financial institutions. While opting for the loans collect and compare the quotes to get the best of deals. And last but not the least, borrower should ensure to repay the installments which in turn will enable the borrower to increase the credit score.

Secured Loans
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