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News - Find a Secured Loan when you have a Bad Credit History

If your credit history is less than perfect then finding a loan from a high street lender can be difficult say leading sub-prime lenders.

Life doesn't always go to plan and it is easy to fall into financial problems if you suffer such circumstances as a redundancy, divorce or illness. Around one in five people have a bad credit history in the UK, and the loan market has developed to meet this demand. Although it can be difficult to find a bad credit loan from the main high street lenders there are many specialist lenders who can offer a wide range of competitive secured and unsecured loan deals.

A Bad Credit History

A bad credit loan history can result from many instances ranging from relatively minor to major :missed payments on credit cards, previous mortgage arrears, defaults, a County Court Judgement (CCJ), a Repossession Order, Bankruptcy.

A Secured or Unsecured Loan
Generally, if you have had previous bad credit problems, if you are a homeowner it is easier to obtain credit. The loan is secured on your property by the lender and because there is a low risk of the lender losing any money the loan is offered at a lower APR (Annual Percentage Rate).

Secured home-owner loans are available from £3,000 to £100,000, usually for a period of between three years to twenty five years. The loans can be used for most circumstances, including debt consolidation and home improvement. If you are a tenant getting a loan will depend on your current status - your earnings and bank and credit history will be considered. An Unsecured loan, or Personal loan can cost more and be more difficult to obtain especially with a bad credit record, but it does not carry the risk to your home of a secured loan. The maximum unsecured loan is £25,000, with repayment terms usually from 12 to 84 months.

Applying for a Bad Credit Loan
The lender will consider your income and financial commitments to decide whether you can afford to take on and repay additional finance. They generally use credit scoring and credit reference agencies to assess your suitability for a loan. Credit reference agencies, such as Experian, hold information about your credit history, existing debts and any adverse credit history. If you are refused a loan or want to check your own credit rating you can apply to a credit reference agency for a copy of your credit file. There is a small fee for this service.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

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