subject: Poor Credit Loans: Financial Support Despite Past Mistakes [print this page] Poor credit loans cater to the financial requirements of the people having a bad credit history. Such borrowers usually do not get loans from elsewhere as they carry high risks for the lenders. However, as these loans are carved out specially for providing the funds to the people with a risky credit profile, availing of loan becomes easier for them. You have to come true on certain terms-condition of the lenders.
These loans are approved once you have proved your repayment capability. To do so, you should take the documents of annual income, bank statements, employment and residential address to the lender. You will be approved an amount that falls within your existing capability to repay. The loan is meant for the people having a bad credit history of late payments, payment defaults and CCJs.
Poor credit loans are categorized in secured or unsecured options. Homeowners can opt for the secured loan that requires you to pledge a property like home or a vehicle for collateral. Such loans are known for advantages of low rate of interest and longer repayment duration that ranges from 5 to 25 years. Depending on value of the property for collateral, you can borrow 5000 to 75000. You can make use of the loan for any personal purposes such as home improvements, purchasing a car, debt-consolidation, wedding and holiday tours.
Tenants or non-homeowners can take out the unsecured loan without collateral. Such loans carry smaller amount ranging from 1000 to 25000. Its repayment has to be made in one year to 10 years. The interest rate will be little higher.
Poor credit loans are given at fixed or flexible interest rate. So, choose the interest rate carefully after going through its pros and cons. You should compare as many lenders as you can online so that some competitive offers can be located. Make sure that you repay each installment of the loan on the due date so that your credit rating improves.
