- By: JULIA NICOLE
In present scenario where inflation has made the living index go high, it has become tough to meet both the ends well. Every now and then, we feel a financial crunch and look out for loan options. In such a case, loans are the best option to evade unforeseen expenses. If you have a good credit score, eking out life is easier, but in case you have a bad credit history, you might be thinking that in order to manage the day to day expenses you are not entitled for the procurement of the loans. But, situations have changed fortunately and finance market has opened up services of loan for people with bad credit score. This implies that people with bad credit scores can also apply for loans.
If , by any chance unfortunately you have failed to pay your previous debts, credit card bills, utility bills debt or have become defaulter, your credit history must have received severe negative effects. This in future aggravates your troubles, by affecting your credibility in the eyes of moneylenders by rendering the procurement of loans expensive as compared to all other having a good credit score. As the amount of risk in lending loans to people with tainted credit history is high, thus they are bound to pay high rate of interest. Though, you have to pay high rate of interest, you are saved from humiliation and get ready cash within a period of day or two.
Loan for people with bad credit history can be of two types, i.e. secured loans or unsecured loans. Secured loans are offered, in lieu of a collateral security as your home, office or some insurance policy. Here, the risk is high as in case of non-payment your assets are at a great risk. Secured loans can be used as a tool by the borrower to improve their credit history. Since, the rate of interest is lower than that of the unsecured loans, as there is a sense of security for the lender, as they posses the right to confiscate the asset. In case of loan for people with bad credit history the amount which can be borrowed under secured loans may range from £1000-£75000, whereas, the time for the repayment may range from 5-30 years.
Unsecured loans are given without any collateral security, thus the rate of interest is higher. It is tough to procure unsecured loans by people who have bad credit history. For obtaining such loans you need to fulfill some formalities like, you must be employed and receiving a monthly salary, should be a resident of UK and must have a bank account.
You can look out for money lenders that offer loan for people with bad credit history online and offline as well. Ask for the quotes from them and then you can compare and contrast them, in order to obtain the best offers. Being a wise customer make sure that you try and negotiate the rate of interest and repayment mode. Once you have finalized the lender, you just need to fill certain documents online and fax few necessary documents. Once all these formalities, are done the transfer is made immediately.
Julia Nicole is an expert financial adviser and has written authoritative articles on the finance industry. For more information about loan for people with bad credit, very bad credit loans, very bad credit auto loans then visit www.verybadcreditloansuk.co.uk