Poor Credit Rating

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Introduction:

There is no definite time frame specified on when to take care of urgent expenses and when not. Depending on the situation and the prevailing circumstances, you need to be prepared to meet any expenses at any point of time. If for any reason, you are lacking the funds and do not have any other viable option, then the best you can do is to opt for external financial assistance. Loans are easy to obtain if you are having a good credit history. But then with a poor credit, availing loans does not seem to be feasible. Even if loans are sanctioned, you will have to pay a high rate of interest. In these circumstances, poor credit rating loans can certainly assist you overcome the financial crunch.

Types:

Poor credit loans are generally bifurcated in to secured and unsecured form. In case of the secured form, applicant has to put some collateral against the loan, which can be a car, home or any other valuable asset. On the other hand, unsecured option is devoid of any collateral pledging. The approval comes instantly and that too without any extra cost. However, the amount made available will be limited and the interest rate charged will be slightly higher.

Repayment and interest rate

The loans are specifically designed to cater to the needs of those struggling with poor credit. With so much risk involved, the interest rate charged will be high. The loans are usually approved with a interest rate of 15% and 25%. A small amount of up to £25000 is released for duration of 6months- 10 years. The secured option is ideal for those who are in need of bigger amount, as the applicant can borrow up to 125% of the security pledged. The reimbursement term will be in between 5 to 25 years.