All About Bad Credit Secured Loans
Bad credit secured loans are a relatively recent addition to most brokers' portfolios. Just a few years ago a less-than-perfect credit history usually meant the end of the financial road. However, today there are a variety of products to choose from; some of which are surprisingly attractive.
What is bad credit and how does it affect me?
Even if you are unaware of it; the chances are that your credit history is already logged with a Credit Reference Agency. Many factors go into calculating your credit score, including: how much you borrow, how you spread your debts (credit cards, hire purchase, mail order etc) and how regularly you meet repayments.
Banks and other lending institutions use your credit score to calculate how much of a borrowing risk you will be. The lower the credit rating, the greater the risk you are considered to be. Lenders typically offset risk by charging higher interest rates.
You've probably seen companies offering to repair your credit profile. In reality there's little that they can do that you can't. And you'll have to pay. Instead visit www.experian.co.uk or telephone 0870 241 6212 and you can order a copy of your credit history for just £2.00. Check that all details are correct and fully up-to-date.
Can I get a secured loan with bad credit?
You've received your credit report, and the news is bad. Your credit rating is scraping the floor. The good news is that it is still possible to obtain a secured loan. A number of financial institutions have loans specifically tailored to people with a history of adverse credit.
Loan terms vary from lender to lender and the best advice is to shop around. Anyone with serious credit problems, including default notices and CCJs, will be looking at higher interest rates, but this is often balanced out against the amount of equity available in the property.
How do I find the best deals?
Just because you have a bad credit profile; doesn't mean that you'll be punished with sky-high rates. The secret to finding the right loan is to do as much homework as possible. A good broker will know which of their lenders are happy to overlook various black-marks on your credit history. For example: one lender may disregard CCJs which are more than three years old, while another will ignore credit defaults all together.
Should I take out a bad credit secured loan?
Before taking any major financial step, you should always think carefully about how this will affect your future. One of the best reasons for taking out a bad credit secured loan is to repair your credit rating and get back on track. If you are already paying high rates on a variety of credit cards and other loans, a secured loan may be the lifeline you need; helping you to get out of debt for good. When you're making your decision, sit down and calculate exactly how much interest you are already paying on your current debts. Then look for loans which offer lower rates of interest. The right secured loan will get rid of the debts that are damaging your credit rating, as well as saving you money in the long run.
Michael Stepney is part of the team at First Aid Finance; one of the UK's leading secured loans brokers. For more advice or a bad credit secured loan quotation visit their website at http://www.firstaidfinance.co.uk.
Latest News
The Star-Ledger - NJ.com | General Growth gets 2-week reprieve on loans Chicago Tribune, United States - The real estate investment trust said it and the syndicate of lenders "are continuing their discussions" on a longer-term extension to the loan, ... GGP Gains Two-Week Extension on $900M Loans General Growth gets 2-week extension on $900 million in loans General Growth Properties gets loan extension |
Wall Street Journal Blogs | Restoring the flow of credit to entrepreneurs Los Angeles Times, CA - A Treasury Department program aims to make it easier for lenders to find buyers for the loans they make. By Cyndia Zwahlen The credit crunch looks like an ... Forbes: Let the Small Business Administration work SBA Applauds Treasury Action to Bolster Secondary Market for Small ... Feds hope to unfreeze SBA, consumer lending |
![]() Straits Times | Government plans new credit, mortgage programs O Jornal, MA - The Fed program for consumer debt will lend up to $200 billion to the holders of securities backed by various types of consumer loans such as credit cards, ... Lenders Become Proactive Mortgage relief gets stuck Partisan blame for financial crisis not so easily affixed |
New York Times | Turning Around the Idea of Student Loans New York Times, United States - “This is a five-year loan, and that helps ensure a certain amount of longevity for this project.” Justin said he first became interested in poverty issues ... |
![]() Ottawa Citizen | The Fed boosted emergency loans to banks and firms The Associated Press - The report also said investment firms borrowed an average of $52.4 billion from the Fed's emergency loan program over the week ending Wednesday, ... Fed Commercial Paper Holdings Rise to $295.1 Billion (Update2) Bailout Report Card--A Failing Grade and a Frightening Outlook for ... "Oops, We Meant $7 TRILLION!" What Hank and Ben Are Up to and How ... |
Student debt levels portend rising loan default rates Indianapolis Star, United States - They were aiming to win big so they could pay off their student loans. "If you don't try, you can't win," said Brown, a 26-year-old marketing consultant. ... |
Hedge Fund Manager Hendry Bets on Deflation With UK War Loans Bloomberg - The “Jolly Long Bond,” as Hendry calls the war loan, will be the most reactive to deflation because not having a maturity means it has long duration, ... |
Loss of college loans lender may have little effect Spartanburg Herald Journal (subscription), SC - The financial aid director for Spartanburg Community College stressed that these types of supplemental loans are separate from the Stafford Federal Student ... |
Detroit's Big 3 Will Try Again To Get Federal Loans NPR - They're going to try, again, to convince Congress to give them federal loans. They say they need the money to avoid an industry collapse. ... |
![]() Boston Globe | Problem-solver Boston Globe, United States - Bair's plan to systematically modify 2.2 million loans for defaulting borrowers has drawn widespread support - except from the Bush White House. ... Avoiding your own mortgage collapse Efforts are under way to head off foreclosure |
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