The weighing scale is heavier with poor credit borrowers compared to good credit borrowers; so to meet the needs of borrowers with poor credit, poor credit loans are designed.
Poor credit in the credit score is the result of big or small faults of the borrower in paying monthly installment debt. All those borrowers with damaged credit history like County Court Judgments, late payments, missed payments, arrears or defaults are eligible for .
The prefix 'poor' with the borrower's credit history are issued by the reputed credit agencies like Equarian, Transunion and Equifax. These agencies issue the poor credit on the basis of borrower's repaying capability i.e. missed or late payment, stability of residential or employment, improper debt management are involved. These factor causes borrower to lower down the credit score of the borrower. Usually, a score lower than 580 in the credit report of the borrower, issued by the FICO, is considered to be poor credit.
Poor credit loans can be distinguished on the basis of collateral placement i.e. if the lender is interested in pledging the collateral then he can avail secured option on other hand borrower can pick unsecured option if he don't pledge collateral for the loan approval.
Secured poor credit loans are best way to offset credit problem as lender offers various interesting features like lower rate of interest, flexible repayment period etc. Borrower can borrow greater amount depending on value of property financially weak borrowers are usually offered the amount ranging up to ?75000 with the easy repayment term varying from 5 to 25 years.
Unsecured poor credit loans do not require any collateral. So, borrowers like tenants or homeowners can avail the loaned amount ranging up to ?25000 for short term, ranging from 6moths to 10 years of repaying duration.
Borrowers with bad credit shouldn't feel neglected in the financial market as now they have wide choice for availing poor credit loans.
