Everyone makes a mistake in life at one point of time or other. If you couldn't pay some loan installments due to inevitable circumstances and are now suffering from poor credit score then here's a chance for you to avail money and pay off your debts and gain credit points in the process. Bad credit loans are specially designed for people suffering from bad credit history.
FICO credit score ranges from 300 - 850 points. If a person is having a credit score of less than 600 points then he is called as a bad creditor. A poor credit score can be due to arrears, defaults, CCJ, IVA, bankruptcy etc. if your credit score is less than 600 points then you are eligible to avail bad credit loans.
These loans can be broadly divided into two categories namely secured and unsecured bad credit loans. While secured can be availed by placing a property as collateral with the lender, unsecured ones can be availed without any such security. If you want to avail large amount of money then you should opt for secured form. To avail secured bad credit loan you can place any of your personal property like car, home, bank account, important documents etc as collateral with the lender.
Amount and rates
The loan amount that can be availed with secured forms of these loans ranges from ? 5000 - ? 75000. If you want to avail an amount greater than ? 75000 you can do so by placing a worthwhile property as collateral with the lender. The repayment duration is very flexible that ranges from 5 - 25 years. They carry very low interest rate compared to other loans primarily because collateral is involved.
But if you want to avail small amount of money then unsecured genre of bad credit loans are the one for you. You don't need to risk your property in order to attain them but the interest rate is a bit higher. With such loans you can borrow an amount up to ? 25000. Loan amount depends upon the monthly income and repayment ability of the borrower.
SUMMARY
Bad credit loans happen to be one of the most sought after loans where in poor creditors are endowed money in cases of its insufficiencies. Secured and unsecured the two genres of availability. Rates are a bit high but are justified. One can avail these loans either through conventional or online loaning market.
