Bad credit secured loan: helpful in your turbulent time
by: Simon Peyton
Nowadays, finding a lender that offers bad credit secured loan is not a problem for the bad credit borrowers because of the fact that we are living in turbulent times where bad credit is common. Though there are lenders that especially deal with the bad credit secured loan.
Bad credit secured loan is secured in nature this implies that to qualify for bad credit secured loan you need to offer some of your assets as collateral against the loan amount. Collateral can be borrower’s home, property, vehicle or any valuable assets.
The secured bad credit loan is the loan that is secured against the collateral of the borrower. Therefore, borrower’s collateral acts as strong financial backup for the bad credit secured loan which helps them to avail easy and flexible repayment term, interest rate, amount owed etc.
Under bad credit secured loan, the amount that one can borrow depends primarily on the collateral placed. Usually, the amount offered as bad credit secured loan ranges from £5,000 to £75,000. Depending upon the borrower’s favorable financial situation, credit history and collateral the loan amount can exceed up to 125% of the collateral value.
The borrower under the bad credit secured loan enjoys easy and flexible interest rate for the repayment period of 5-25 years.
Bad credit secured loan are meant for the borrowers who have struck up with bad credit score due to various reasons like missed or late payments on the pervious debts, shopping lavishly on credit cards, dealing with home equity loan etc. Therefore, borrower’s bad credit can be also due to unforeseen situations like loss of job, long time illness or regular change of residence place.
Borrowers like CCJ’s, IVA, bankruptcy, arrear or default holders are categorized as bad credit borrowers.
Bad credit borrower’s can use bad credit loan for various purposes like home improvement, car buying, education expenses etc but mainly these loans are opted to rub off the bad credit i.e. only possible when borrower deals with regular monthly installment.
In the hour of financial crisis, bad credit secured loan proves to be phenomenal as it helps the borrower to deal with his needs with easy repayment option.
About The Author
Simon Peyton has done his masters in finance from CPIT. He works for the Loans Fiesta. For any type of loans as Bad credit secured loan, bad credit unsecured loan, secured loan uk,secured homeowner loan in uk,secured home improvement loans please visit http://www.loansfiesta.co.uk
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