Bad Credit Loans

Bad Credit Loans

What are Bad Credit Loans? If you have borrowed in the past and have failed to make all your repayments on time, have gone into arrears with a mortgage or have defaulted on repayments then these problems will have been recorded on your credit file. These sorts of problems will gradually deteriorate your credit rating and your credit score. In simple terms you have gone from having a good credit history to having a bad credit history.

 

In this situation the only way you will be able to borrow in future is to get a bad credit loan – a loan designed for those with a bad credit history. Typically, because you are now seen as a worse risk, the interest rate charged will be higher.

 

Before the recent credit crunch and economic recession bad credit loans were still readily available. Getting credit was not too much of a problem. But now bad credit loans are getting hard to find and those that exist ask punishing rates of interest. Many people have resorted to payday loans and cash advances but there are two problems – first they are very short term (typically 30 days) and second they charge interest rates of over 4000% APR in some cases.

 

Bad credit loans need some innovation so that people with bad credit can be helped – and fortunately that innovation is here. Guarantor loans are the new and highly improved form of bad credit loans.

 

These bad credit loans:

• Only charge a Representative APR of 53.8% on loans of £500 to £5000, and 199% on shoter term loans of £50 to £500..

• Are fully flexible so you can repay early without penalty so as to reduce your overall interest costs.

• Mean you are not credit scored so your credit history is irrelevant.

• Use your social network to enable you to avoid being credit scored – the Facebook of unsecured loans, if you like.

• Enable you to improve your credit rating so you can get even better terms in future.

• Are fully unsecured – there is no security required; no property is put at risk.

 

With these bad credit loans you get around the need for computerised credit scoring by providing a guarantor instead. By providing a guarantor the lender does not consider that their cash is at risk – the guarantor guarantees to repay your loan if you should unfortunately default on a payment. So these are the perfect bad credit loans.

 

To get one of these bad credit loans you have to complete the online form and then the loan offers will be sent to you by the lenders. Because there are multiple guarantor loan lenders involved you will be able to compare offers and then choose the right bad credit loan for you. Within 24 hours of acceptance by the lender the unsecured loan you need will be paid out. So, apply today.