When you look for borrowing money at the verse of any urgent financial need, confusions are destined to arise. The number of options available are numerous and so are the confusions associated with them. With the increase in competition in the UK loan market, every lender claims that his loan basket is more enriched compared to others. Is it the fact? If every one is better than the other, is not it wise to go for the best. How? Just by performing online search and increasing own level of financial literacy.
After performing proper research, you will find that loan availability is not stuck on the verse of adverse credit status. Lenders are all aware that bad credit is as natural as the financial adversities. If it were not the case, 40% of the UK population might not have found them in the clutches of bad credit. Bad credit may be any thing. It may be defaults, arrears, CCJs, late payments, or even bankruptcy. Earlier lenders were reluctant to offer loan plans to bad credit borrowers as these negative points signify a loss of creditworthiness. Then the size of such borrowers was also limited and they formed the deprived class in the loan market.
With the increased cost of living, the advent of plastic money and the mounting inflationary pressures have made a significant change in the situation. In the tall claims of plastic money more and more Britons earned the tag of bad credit. The reason was simple. The repayment of credit card bills is not as easy as they appear. Once you miss the payment, scores of adversities raise their head. According to a recently concluded eminent survey, there are 2.9 credit cards per Briton. With such volume bad credit score is destined to arise. And how can the availability of bad credit loans be prevented?
In the latter part of the last decade witnessed a massive diversification of the UK loan market. Online lenders surged the loan market and the competition became so fierce that a saturated market(only for the good credit ones) was no more profitable. Hence, there was a desperate demand for extension. And the beneficiary was the untapped but highly potential bad credit market. In order to increase their presence in the loan market, lenders come with lucrative loans for people with bad credit and packaged them in the name of
bad credit loans. They associated a higher rate of interest to minimise the risk factor but made the penetration of these loans wide to increase their profitability.
Like the traditional loan plans, the lenders began to offer the bad credit loans in both secured and unsecured manner. When the borrower was ready to pledge his residential property, bad credit loans were offered at a lower rate of interest otherwise the payable rate remained high. By the passage of one two more years, unemployed also came in the ambit of these loans. The bad credit loan market evolved in such a manner. Now, it is a self reliant market catering the needs of millions of Britons and offering them the required cash with few clicks on computer.
