Bad Credit Loans: a Reason to Smile for Poor Creditors

by : Jennifer Morva



Bad credit loans are meant for people suffering from bad credit status. If your fico credit score is less than 600 points then you can avail bad credit loans. Also if you are suffering from arrears, defaults, CCJ, IVA, bankruptcy etc you can avail the benefits of bad credit loans.

Bad credit loans can be divided into two categories namely secured bad credit loans
and unsecured bad credit loans. Secured bad credit loans can be availed by placing collateral against the loan amount. It can be any of your personal property like car, home; important documents etc. Secured bad credit loans carry lots of perks. The interest rate of secured bad credit loans is very low compared to other loans and the repayment duration very flexible. Unsecured bad credit loans can be availed without placing any security against the loan amount but this result in higher interest rate and shorter period for repayment. Also the loan amount that can be availed with unsecured bad credit loans is smaller compared to secured bad credit loans

The loan amount that can be availed with secured bad credit loans ranges from ?5000 - ?75000. You can avail an amount greater than ?75000 by placing collateral of high equity. The repayment duration of secured bad credit loans ranges form 5 - 25 years.

With unsecured bad credit loans you can avail an amount ranging from ?1000 - ?25000 with repayment duration of 5 - 10 years. Although the interest rate of unsecured bad credit loans is slightly higher compared to secured bad credit loans you can easily minimize it with good research.

Bad credit loans are very useful for bad creditors. You can use bad credit loans for any purpose, be it personal or professional. You can use it for vacation, wedding, paying debts, debt consolidation etc. You can also increase your credit score by regular payment of loan installments. This can be very useful for availing loans in future.
Bad credit loans can be either through physical market or through online lenders. It's for you to decide which option you want to go for. To apply for bad credit loans all you need to is fill up an online application form mentioning details like type of loan you want to avail, amount, contact details etc.

The Conclusion is that bad credit loans are boon for people suffering from bad credit status.