Does your poor credit record deter you from availing loans? Do you have to curb your desires due to the defaults you made in paying your earlier loans? If yes then its time to forget all your problems as these days lenders are coming up with poor credit loans for those people who have bad credit history. Many times people with poor credit people are victims of crafty lenders who offer the loans at very high rates and in the end borrowers are unable to repay their loans. As a result the borrowers are left with bad credit record which hampers their financial growth. Poor credit loans rescue you from the situation. These days lenders who provide bad credit loans are also available online and they offer a wide range of loan amounts and interest rates.
If the poor credit loan is in secured form, then lender is offered some collateral as guarantee like home, property, bank documents etc. Collateral is an asset which holds a value and which would be seized if you fail to repay your loans. Your current financial standing and collateral value inform the lender of your capability of repaying the loan. Generally one can borrow an amount ranging from ?5,000 to ?75,000 with the amount varying on the collateral that you offer. Often it is found that the loan term ranges from 5 to 25 years .Documents required include income tax returns, bank statements and proof of ownership. Care should be taken to make timely repayments to avoid accumulation of further bad credit.
Sometimes these loans are also offered without collateral and this kind of loan is called unsecured loan. The amount for such loans is generally the same but they have higher interest rates due to the lack of collateral. Before providing bad credit loans the lenders need certain formalities to be completed which in general are not there for good credit borrowers. These may include certain documents about employment information, credit checks or asset details. Generally, the rates vary from 7.4%APR to 27.6%APR depending upon the type of loan taken.
