Most people are generally hassled with their bad credit score
. They assume that they cannot avail of credit to meet their financial needs. But this is far from the truth. Loans for bad credit grants advances to people with poor history. These people are now given a chance to fulfill their dreams, without any worry.
These advances are available in the secured and unsecured form.
In the secured form of the advance, the borrower needs to pledge his property as collateral against the loan. The have a lower rate of interest. The lender grants credit ranging from 500 to 1, 00,000 with a repayment term of 1 to 25 years.
In the unsecured form, there is no need to provide any security as collateral against the loan amount. As there is no collateral placed, the rate of interest charged is high. This is because the lender is at a risk in case the borrower defaults in repayment. The amount that can be borrowed ranges from 1000 to 25000 with a repayment period of 1 to 10 years.
These finances are granted for the following reasons;
1.-To pay off all the existing debt.
2.-To improve the borrowers credit score.
Advantages of these credits:
1.The interest rate charged are nominal, they suit every borrowers pocket.
2.People with bad credit are also granted finance.
Disadvantages of these finances:
1.The interest rate is slightly higher in case of unsecured credit.
2.As the lender deals with people who have a previous bad credit record, the repayment period is short.
The eligibility criteria are as follows;
1.The applicant must be over 18years of age.
2.He must be employed.
3.He must have a valid bank account in his own name.