Loan Tips and Resources

What is a Bad Credit Loan?

A Bad Credit loan is a personal loan for people with bad credit rating because a bad credit rating or credit history can make your life a misery. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal.

Bad credit is where a borrower has a credit record which discloses a default on the repayment of a debt or loan facility. Sometimes the existence of a county court judgement does not mean that the borrower is a bad payer as the bill or debt in question may be subject to a genuine dispute. However if the record shows a number of County Court Judgements this a warning sign to any financial institution of a possible bad credit.

If you have a bad credit rating or adverse credit rating you may find it difficult to obtain a standard personal loan. These types of loans are also known as poor credit loans.

A Bad Credit loan is a personal loan for people with bad credit which is secured on your home. It frees up the spare capital (or equity) in your home for you to use on whatever you want.

A Bad Credit loan is ideal if you want to raise a large amount and have a poor credit history you may be able to get a Bad Credit loan even when you have been turned down for an unsecured loan.

If you are a home owner with equity in your property, a Bad Credit loan can bring that normality back to your life.

With a Bad Credit loan you can borrow from 5,000 to 75,000 and up to 125% of your property value in some cases. Bad Credit loans secured on property can be repaid over a period of between 5 years and 25 years .

A Bad Credit loan can be used for any purpose such as; home improvements like a new kitchen or bathroom, that once-in-a-lifetime holiday, a dream car or repaying debts to reduce your monthly outgoings to a more manageable amount.

Bad Credit loans rates are variable, depending on status. Generally speaking if a loan is to be given to a bad credit the interest rate will be higher and an up front fee may also be charged. Monthly repayments will depend on the amount borrowed term.

Some lenders specialise in adverse credit because they can charge high fees and a higher interest rate than normal and if the borrower is now in a good financial position the risk rating of the loan may be as good as someone who has no record of defaults.

However most banks and financial institutions will turn down a loan application if there is a history of bad payment or insist that it is secured on a property.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Related Links:

Bad Credit Auto Loan - Your Best Options?

What is an Auto Loan?

Risk It With A Bridging Loan?

Latest Banking & Loans News

Do Free Credit Scores Exist?
6 Sep 2008 at 12:58am
You see a lot of ads for free credit scores, but most of these are misleading. At best, you can get a free credit score under a trial offer,...

Are You Saving for Holiday Expenses?
5 Sep 2008 at 8:57am
The holidays are coming. Yes, it's still hot outside in many places, but the retailers are starting to think about decorations and music. Is your bank account ready?...

Are Free Credit Reports Really Free?
3 Sep 2008 at 11:34am
Usually not. Most websites and services with "free" in the name do not offer truly free credit reports and scores. Consumerist just roasted the poorly named Freetriplescore.com, noting...

Banking - 3 Years After Katrina
30 Aug 2008 at 6:41am
Hurricane Katrina taught us some lessons 3 years ago. Clearly health and safety are the most important things to spend your time and energy on, but you can also...

FDIC May Borrow From Treasury
28 Aug 2008 at 11:43am
With all the recent bank failures, the FDIC is finding itself in a cash crunch. They have the assets to stay afloat, but liquidity may be a challenge if...

Bank Hands Out Poorly Shredded Checks
25 Aug 2008 at 12:28am
WHH Ranch Company got some unexpected publicity last week. They used shredded checks from a local bank as packing material to keep jars from breaking during shipment. However,...