Poor Credit Loans: for Borrowers With Poor Credit History

By: Carmen Cortez

Poor credit may not be deliberately caused by a borrower. Sometimes, such situations arise in which the borrower is not able to do anything about it. What if such a borrower needs money? He is not refused loans nowadays as lenders have started to empathize with them. Such loans are called Poor credit loans.

Poor credit can be a result of any big or even smallest of faults of the borrower. Poor credit history may be due to County Court Judgments, arrears or defaults in the credit report of the borrower. These cause the lowering of the credit score of the borrower. A score lower than 580 in the credit report of the borrower, issued by the FICO, is considered to be poor credit. Credit report can be obtained by contacting other agencies like Equarian, Transunion and Equifax.

Poor credit loans can be secured or unsecured as per the suitability of the borrower. Secured poor credit loans involve an asset to be pledged as collateral with the lender. This collateral helps in serving as a guarantee for the repayment of the loan. Thus the lender provides a lower rate of interest to the borrower. An amount of ?5000-?75000 can be borrowed through secured poor credit loans. The borrowed amount has to be repaid in duration of 5-25 years.

If the borrower is a tenant who does not have an asset to place or even if he is a homeowner but is not comfortable placing his asset as collateral, he can safely choose unsecured poor credit loans. These loans are charged a slightly higher rate of interest which can be lowered but these surely come with the benefit of being collateral free. A sum in the range of ?1000-?25000 can be borrowed for a term of 6 months to 10 years.

To get low rate poor credit loans deal, the borrower is suggested to search online as numerous lenders there are ready to lower their rates due to competition in the online market.

With the help of poor credit loans, the borrower can now manage his expenses and try to initiate a new financial standing by repaying the loans timely.

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