If due to any reason, you have not been able to repay your earlier loan, or have a small County Court Judgment against you, you may be in for a bad credit history. This bad credit history affects the lender if you want a loan in the future. But the right opportunity in such a case is here and it is called .
All the financial transactions that are done by a borrower, like loaning money, repayment, missed repayments etc are tracked by credit reporting companies like Equarian, FICO, Transunion, Equifax. A composite report is made which includes a rating in the form of a score out of 800. A score of less than 580 is considered to be bad credit score.
Bad credit loans UK can be availed by such borrowers to overcome their personal needs like funding college education, home improvement, car purchase, debt consolidation etc.
Available in two options, bad credit loans UK can be secured or unsecured. Through secured bad credit loans, an amount of ?5000-?75000 can be borrowed for a term of 5-25 years. For this option, high equity collateral has to be pledged as security for the loan and in turn helps in reduction in the rate. If the borrower does not want to pledge collateral, he can take up unsecured bad credit loans UK. They do not require collateral and offer an amount of ?1000-?25000 for a term of 6 months to 10 years.
Usually bad credit loans UK are charged a high rate of interest. They are considered a risk by the lender. Therefore to cut the risk, high rates are charged. To lower the rates, the borrower should search thoroughly to get a good deal.
Online research for bad credit loans UK helps the borrowers in gaining access to quotes of numerous lenders who are present in the online market. These quotes can be compared and the best deal can be chosen.
Bad credit loans UK certainly assist the borrower in fulfilling his needs and requirements. He has the freedom to choose what kind of loan secured or unsecured, he wants to avail.
