When you need finance you apply for a loan. But if you fail to repay the funds in time it affects your credit rating and you are tagged as a bad credit holder. This tag follows you whenever you need fiscal aid. However is does not deprive you from gaining assistance. Bad credit loans are initiated to serve such borrowers.
The credit amount you borrow may not only be used for your needs but also to change your credit history. Besides, the loan amount may be used to pay off your pending bills, purchase a house, car, for wedding expenses, educational purposes, for any medial emergencies and so on. This form of credit offers you an amount ranging from 200 to 25000 for a period of 1- 10 years.
Loans for bad credit are of secured and unsecured nature. If you apply for the secured form of credit then you are obliged to place collateral against the finance borrowed. They carry a low rate of interest. In addition if you fail to make repayment in time then the lender will take charge of your pledged security to recover the amount of the credit. The unsecured does not demand any security. The lenders risk in dealing with you is more, thus the interest rates they carry are high.
Eligibility conditions:
You must be a citizen of UK.
You should attain majority, i.e 18 years of age.
You must be employed with a regular income.
You must have a valid bank account.
As you have a poor credit score you must be able to prove your repaying ability to the lender. These advances can also be availed through the online mode. If you explore your options in the online market you will find these advances with cheaper rates. It saves time and heavy documentation.