Life can be quite easy if you have unhindered access to credit, but can become difficult when you are denied access to funds. People suffering due to their bad credit scores are the ones who suffer the most. They cannot secure credit at competitive rates, and nobody is willing to entertain their request for credit.
So what is bad credit?
You will be tagged as a person with bad credit if you have a score of 500 or below from major credit rating agencies such as Transunion and Experian. You credit score can nosedive if you fail to pay your outstanding debts, utility bills, and credit card debts. People with Arrears, IVA’s, Late Payments or even those who have filed for bankruptcy have low credit score.
Loans for bad credit
Loans for bad credit in the UK are available from private lenders and are easily available to all those who have low credit score. It is mainly of two types.
1. Secured loans -In this type of loans for bad credit, borrower will have to provide some kind of collateral (house, etc) to the lender. In return, they will get provided loan at lower rate of interest and much longer repayment term.
2. Secured loans – They are easily available to all those who are not in a position to provide any kind of collateral and come with a higher interest and much shorter repayment term. In both these cases, you can get bad credit loans for any amount up to £25,000.
Some of the advantages of loans for bad credit are:
* You can use loans for bad credit to clear off your high interest outstanding debt.
* You can meet your urgent expenses when you cannot arrange finance from any other source.
* You can improve your credit score by making regular repayments of these loans for bad credit. You can even get access to low cost funds next time once you are successful in clearing off your current loan.
Bad credit loans in the UK are serving the interest of its residents since past many years and if you feel that you cannot get access to traditional loans, you can always opt for bad credit loans and solve your financial difficulties within hours.