Loans For Poor Credit : Fiscal Help For Bad Creditors
It is always assumed, that people with bad credit are not applicable for financial help
. This is not true. There are various loans in the market which are designed for these people. Loans for poor credit cater to the needs of people who do not have a good credit standing. The interest rates are suitable to every borrower.
Types of loans for poor credit:
Secured "" The credit applicant has to place sum asset as security against the loan lent. The lender decides the amount of credit to be sanctioned on the basis of the borrowers credibility.
Unsecured "" The borrower does not need to provide any collateral against the loan taken. Loans for poor credit are lent only on the personal guarantee of the borrower. The interest rates are fairly high in these loans, as the lender is at risk, as he lends without security.
The advance lent is in accordance to the borrowers credit standing. Most lenders sanction credit from 200 - 25000. It is advanced for a period of 1 "" 10years. The loan has to be repaid after the completion of the term.
The advantages are that the lender does not consider the previous credit history of the borrower. The risk of lending such finance is borne by the lender himself. But it also has some disadvantages that are as these advances are lent to people with a questionable credit history, the interest rates are high.
The conditions to apply for such credit are as follows;
"The applicant must be above the age of 18 years.
"The applicant should be a citizen of UK.
"The applicant must have a stable income.
"The applicant must have an active bank account.
They can be applied online. The applicant has to apply for credit on the lenders website .The lender checks the details of the applicant and sanctions the credit. The application form must contain the applicants essential details.