Bad Credit history is a major hindrance when someone wants to avail a loan
. If one has a poor financial standing, the lender would not lend money to him. However, to make their life easier, Loans for bad credit have been introduced.
These are finances which do not have any credit check and are open to all who have a poor credit score. These credits can be availed in both secured and unsecured forms. The secured form can be applied for if the borrower is ready to place his property as security.
The interest rates charged on this form are comparatively lower. In the unsecured form, the borrower does not have to place any security to avail the credit. The interest rates are comparatively higher in this form.
The lending institutions can sanction amounts ranging from 1000 to 25,000. The repayment period of this advance ranges from 1 to 10 years.
The borrower does not need to worry about his credit history as he can easily avail this advance. He can pay the amount back on time and improve his credit rating. If the borrower avails the unsecured form, he does not have to bother about losing his property if he is unable to pay back on time. If the borrower avails the secured form, he will have to pay a lower rate of interest.
If the secured form is applied for, the borrower stands a risk of losing his property if he is unable to pay back on time. The interest rates are high in the unsecured loan.
The borrower has to be a permanent citizen of U.K. to avail this finance. He should be an adult of 18 years or above. He should have a regular job at any organization and must have a regular monthly income. He should also have an active checking account.
The borrower can apply for this fiscal aid online. There are no charges and it is fairly easy to fill the form. After the form is submitted, the lender will cross check the information and then transfer the money to his/her account.