subject: Bad Credit Loans For People On Benefits-choose A Loan According To Your Convenience [print this page] It might be difficult for the people on benefits to avail a loan to meet their unexpected or daily expenses. If people on benefits are also having bad credit scores such as arrears, defaults, CCJ, IVA, bankruptcy etc, the situation becomes worse. But, now bad credit loans for people on benefits are there to get you out from this problem and provide you financial assistance for your needs.
Bad credit loans for people on benefits are availed to those who are having less than 600 points, according to FICO, as its credit score ranges from 300-850 points and having a credit score less than 600 makes you a bad creditor. These loans are further classified into two categories, secured and unsecured bad credit loans for people on benefits.
As the name suggests, secured loans are the one, in which you are required to place a collateral security against the loan amount. The collateral security may include your personal property such as car, home, jewelry, important documents and so on. The benefit of secured loans is that you can avail a large amount at a very low rate of interest. On the contrary, unsecured loans are availed to you without the requirement of placing any of your assets as a collateral security. But, the rate of interest on these loans is higher than the secured loans and you can avail a small amount from these loans.
The repayment term of these loans is 1 to 25 years. With the help of bad credit loans for people on benefits, you can avail the amount ranging from 1000 to 75000. The loan amount availed to you depends upon your pay back ability and the value of collateral security. To avoid any kind of harassment, you must pay back the loan amount on time.
