Loans for Bad Creditors - Relief From Financial Burdens

By: Shain Johnson

Life is not always certain; the most uncertain among all is monetary requirements. One may feel very helpless if one needs money in bulk but also can't afford to take a bank loan due to bad credit history. One feels paralyzed in such a situation but not now with financial institutions devising loans for people with bad credit.

Loan companies and financial institutions keep a record of the timely repayment of loans and points are awarded to people making payments regularly and a credit score is maintained. People with score below a fixed value are known as bad creditors. A person can also become a bad creditor if he/she has been declared bankrupt or has a county court's judgment pending against him/her.

Loans for bad creditors: Types

1)Bad credit home loan: Loan for buying a new house or renovating the existing one.

2)Bad credit car loan: Loan for buying a new car.

3)Bad credit secured loan: The interest rate here is less but the brrower has to his/her house or any other valuable asset as collateral. Processing of the loan may take some time as evaluation of the assets is to be done. Any default or delay in repayment entitles the lender to confiscate the assets. The amount of loan under this scheme varies from ?5000 to ?75000.

4)Bad credit unsecured loan: No collateral is required but the documentation and interest rate is more. Processing is fast as no assessment is required.

Loans for bad creditors: Interest rates

The interest rate varies from 7.4% to 27%APR, typical rate being 10.9%APR. The credit history influences the interest rate. The worse the history, the greater the interest rate.

Loans for bad creditors: Valuable tips

The present economy is flourishing and there is cut throat competition among the financial institutions. A customer today has lots of options to choose from. One can today negotiate and an intensive study before approaching any financial institution may help the borrower to obtain the best available deal in the market.

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