Reckless usage of credit cards sometimes makes you fall in problems and leads to debts. What would you do if there has been a sudden arrival of an unexpected expense? Don’t get vexed as unsecured loans for people with bad credit are there to help you in these critical situations.
Over the years, the numbers of people seeking loans have increased dramatically. So has been the number of people with bad credit problems. Credit problems like CCJs, arrears damage the financial standing of the individuals. The loan market is full of lenders offering bad credit loans. These loans are modified to suit the prevailing circumstances of the borrower and offer ample finances at comparatively low rates and a flexible repayment option.
Basically these loans are broadly classified in to secured and unsecured loans for the borrowers’ convenience. Those borrowers who are ready to offer any asset as collateral and are looking for a bigger amount can opt for secured option of the loans. The amount under this loan option is approved on the basis of equity value present in the collateral. Borrower can obtain amount in the range of £5000-£75000 for a large repayment period of 5-25 years.
On the other hand, unsecured option of the loans is beneficial for borrowers who do not own any asset to offer as collateral. The amount offered is comparatively small and is in the range of £1000-£25000. This loan option has a small repayment period that stretches for a maximum of up to 10 years. Although these loans are offered to borrowers with a history of credit problems, the interest rates are comparatively low. This is due to the presence of large number of lenders in the loan market.