Economics Finance

Low credit score loans are available in different forms – as an unsecured loan, as a secured loan, and even as a mortgage. A low credit score lender will typically target people who have an average-to-poor credit rating. A typical customer will have been late on a payment, perhaps have a CCJ against their name, or have a large number of credit cards & loans in their name over a short period of time.

What you want from a lender will depend on your current situation. You are most likely already aware that you won’t be able to get a market leading APR with your loan, or even close to it. You should first consider what type of loan you want. If you want to borrow over £500 then a personal loan should probably be your first choice, even if you are a homeowner. If you have trouble paying back a personal loan you are much less likely to lose your home than you are with a secured loan. Plus the APR probably won’t be too different between these types of loan. If you only want to borrow a small amount of money, say below £500, then a payday loan may be a better option for you. Continue reading ‘Types of Low Credit Score Loans’ »

People who have a poor credit rating should be aware of the handicap that it can present in the financial world. Having a poor credit rating is like tying your hands behind your back before you are entering a boxing match. It can often be very debilitating for many borrowers who are seeking to get any access to loans or funding. If you have a poor credit rating and are looking to get a short term loan approved, you should look at different bad credit unsecured loans that are available.

The biggest positive about applying for bad credit unsecured loans is that you don’t have to worry about your credit ratings. Lenders who offer these short term unsecured loans are only worried about your ability to repay the loan. This will mean that you need to show proof of your income in the loan application if you are going to get your loan approved. Another benefit of applying for a short term loan is that you can have your application approved and processed within 24 hours. This means that you can get the cash you need within a short period of your application. Continue reading ‘Bad Credit Unsecured Loan Tips and Advice’ »

What is an unsecured loan?

Borrowing money without providing the lender a security (such as a property or vehicle).

What is a secured loan?

The lender secures the loan against an asset such as a property or vehicle. If you fall behind with the loan payments, the lender can take possession of that asset.

TRUE OR FALSE: Secured loans are safer than an unsecured loan.

FALSE: Borrowers assume that secured loans are safer than unsecured loans. However, secured means safer for the lender, not the borrower. Therefore your asset such as your home or vehicle is at risk if you fail to make the regular repayments of the loan.

TRUE OR FALSE: Unsecured loans have no risks.

FALSE: If you own your home, but fail to make regular payments on the unsecured loan, your lender may be able to secure a charge order against the property. This means when your property is sold, the debt will have to be paid from the proceeds of the property sale. Continue reading ‘Unsecured and Secured Loan Options’ »