Loans for people with bad credit
Having a bad credit history doesn’t mean that you are unable to meet your financial needs and debt conditions forever. There are number of sources through which a person can get this done and one of them is to approach the financial institutions who are providing the loan services for the people who are suffering from bad credit history.
There are situations where a person is in need of quick loan, is tiered of long waiting for bank approvals or seven sometimes have documentations related complications. It is always better to opt for quicker, wiser and easy loan solution. Having no credit or poor credit is a major hesitant block to getting a loan because bank has a big question mark on you and they don’t rely upon your skills to repay this amount. To get rid from this dilemma; one has to look for alternative sources to secure the loan. Some of them are unsecured loans like guarantor loan, home loan, credit union, logbook loan and many more. There are many service providers in the market and online as well; who are ready to help you out with your bad credit history and with poor credit.
There are number of secured and unsecured loans available in the economics of UK. The basic purpose of these loans is to help people to get out of the vicious cycle of the debts and unable them to have a sustainable and finical proposer life. These loans are exclusively designed to help the people who have a poor credit or even the poor credit history as well. Mainly there are two kinds of loans like secured and unsecured loans. Secured loans are loans that are supported by an asset, like a house in the case of a mortgage loan or a car with an auto loan. It is kind of collateral loan and in case of non-payment the asset can be taken as well. While in unsecured loans lenders don’t have rights to any collateral for the debt.
Based on the given criteria from the financial institution one can go for the following loans:
- Personal Loans: Unsecure loan is personal loan where it has borrowing limit between £1,000 and £25,000 and it is for one year to fie year at maximum. Personal loans are meant to fulfill some personal needs and they have high rate of interest as well. Yet important to remember that they do monitor some credit score as well.
- Guarantor Loan: Same as of personal loan but it involves a guarantor; who can be your friend or any family member. The person has to sign a letter/agreement stating that in case of nonpayment they will be held responsible.
- Payday Loan: Payday loans are typically small, usually $500 or less, and made for a short period of just a week or two before repayment is required on your next payday and in that case there is no such credit score or history required.
- Logbook loan: The most widely accepted loan in UK; which is against the vehicle is logbook loan. This loan is most secured loan and has easy repayment plans as well.