Bad Credit Unsecured Loans - A Remedy For People With Bad Credit
Bad credit unsecured loans are for those people who do not posses any security and have bad credit
. A person applying for such finance agrees to pay back the loan within a set term. This type of credit can also be called a signature loan. Bad credit unsecured loans can be used for various reasons like for buying a luxury car, debt consolidation, home improvements and so on. They can be used as per the need of the borrower.
These are short term finances. They are to finance the immediate credit need of the borrower. The lender lends the credit without any collateral. The entire risk is borne by the lender. Thus this advance carries a high rate of interest. The credit generally lent ranges from 1000 - 25,000 for a period of 1-10 years.
Advantages:
The borrower does not face any risk with regards to losing his property.
The repayment period can be extended by the lender if he wishes.
Applicants possessing bad credit history can also apply for this finance.
Disadvantages:
As there is no collateral. The interest rates are high.
If the repayment term is extended, the lender charges an extra fee.
If the borrower fails to repay the amount, after commencement of the term. A penalty is charged.
Eligibility Criteria:
The applicant must be a permanent citizen of U.K.
The borrower must be 18 years or above.
He must have a regular job at any organization and must have a stable monthly income.
He must have an active bank account.
Bad credit unsecured loans can be applied for online. This process saves time. No verification or paperwork is required. The application form contains details such as the name, age and address of the applicant. He is also required to provide details of his bank and social security number.