Listed below are some of
reasons for choosing a bad credit personal loan. A bad credit personal loan is a low cost loan secured on your home. It frees up spare capital (or equity) in your home for you to use on whatever you want.
A bad credit personal loan allows you to borrow money at a far better rate than an unsecured loan because your home is used as security and deemed less of financial risk by borrowers.
A bad credit personal loan is a specialist loan aimed at those people who may have had credit problems in past. They may have County Court Judgements, mortgage arrears or an imperfect credit history.
A bad credit rating does not always mean you will be unable to get a loan. As long as you have an income and can afford repayment, you can get a loan. A history of CCJ's or defaulted loan repayments will mean that lenders will inevitably charge you higher rates to cover their perceived increased risk.
Even if your history includes CCJs, mortgage arrears or are self-employed - with or without proof of income there are lenders who will view your current circumstances sympathetically. The criteria for acceptance is usually that you are not unemployed, retired, bankrupt or on a debt management plan.
Some brokers and lenders specialise in adverse credit because they can charge high fees and a higher interest rate than normal and if borrower is now in a good financial position risk rating of loan may be as good as someone who has no record of defaults.
