Bad Credit Unsecured Loans

by : Angelo Drew

Bad Credit can happen to anyone at anytime. Unanticipated events like accident, sickness, job loss etc. can create financial dearth in any body's life. No body wants to have a bad credit score or to be in the defaulter's list. But, it happens sometimes. According to the latest report by the high-street bank, last year saw an alarming rise in bad credit. Home repossessions have also increased because of non-repayments by borrowers on their secured loans.

This has widened the bad credit loan market in the UK to a great extent. Maximum number of borrowers is in search of sub-prime lenders who can give loans despite borrower's poor credit record. Different lenders in the UK specialise in granting different loans. Some give loans to those who have CCJ records, some t those who have faced bankruptcy and some to those who have arrears and defaults in their repayment records.

bad credit unsecured loans are turning very popular among the masses in the UK. The major reason of the shift is that most borrowers, especially those in the age-bracket of 25 to 40 years have poor credit score because of one reason or the other. So, they want such a loan product that will give them the required finances and not demand any asset in the form of security or collateral.

The interest charged on bad credit unsecured loans is high because the lender has no assurance that his money will come back to him. Neither in the form of security nor in terms of a decent credit score is the lender satisfied in case of these loans. So, he charges a high APR to compensate the risk involved for him in the loan deal.

Bad credit mostly happens when you have too many late payments, missed payments, arrears. defaults in your credit history or if you have suffered a CCJ (country court judgment) or bankruptcy. But, the good thing is that UK market has plenty of online and private lenders offering such borrower's bad credit unsecured loans.