Borrowers with bad credit history have a low credit rating and are usually refused loans from elsewhere. As the repayment ability of the loan seeker is crucial before seeking a loan. Hence, as per the loan seeker's circumstances the loans are available in secured or unsecured options.
In order to further ensure approval on bad credit loans, the loan seeker should pledge home or any property as collateral depending on the borrowed amount. Collateral cuts lender's risks and hence the loan approval comes without credit history hurdle. But people should go for secured loans only for greater amount of loan as you the rate of interest would be very low as compared to unsecured loans. Also you can repayment duration could differ from 5 to 25 years.
In case you are tenant or living in a rented house with bad credit history, then unsecured loans are the only options left, although homeowners also are eligible for the same. Smaller amount would be approved for 5 to 15 years on high interest rates.
Tips to Remember:
1. Ensure that you have made a good comparison between the lenders/banks as each has their own interest rate.
2. Take rate quotes from them for beneficially comparing them.
3. It is advisable to take bad credit loans from online lenders for a competitive rate offer and for less costly loan.
Last but not the least, make sure to repay the loan in time so that your credit score improves substantially and loan availing in future becomes lot easier.
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