| If you've suffered from financial difficulties in the past, | | | | home, a savings policy or a share portfolio as security. |
| this may have affected your credit rating. A scenario | | | | Should you default on your repayments, you risk the |
| that you don't want to find yourself in is having a low | | | | chance of losing your collateral. |
| credit score and needing a loan. You may well believe | | | | The majority of people who have adverse credit are |
| that it's now pretty much impossible for you to obtain | | | | well aware of this fact and rather than risk losing their |
| any sort of finance. | | | | home, would rather find an unsecured or personal loan. |
| This isn't strictly true as many lenders are now aware | | | | This type of loan will usually be for borrowing of a |
| of the fact that the majority of people are struggling | | | | lower amount and require no form of security. Due to |
| financially. The economic decline of the last few years | | | | this fact the interest rates are higher than that of a |
| hasn't helped and we seem to have less money in our | | | | secured loan. However if you have a low credit rating |
| pockets and more bills to pay than ever before. This | | | | as well, this could push the rate up even further. |
| has made lenders more willing to offer low credit | | | | There are many lenders who will happily give you a |
| score loans. | | | | low credit score loan that requires no collateral, but you |
| The best choice if you have adverse, bad or poor | | | | need to be fully aware of what you're getting into. |
| credit is a secured loan. Lenders will feel they are | | | | Always check and make sure you understand the |
| taking an unnecessary risk by lending money to | | | | terms of any loan before signing an agreement. If it |
| someone with a poor credit history. Therefore if you | | | | just doesn't seem right, then walk away! Your loan will |
| are able to offer some form of collateral to secure a | | | | cost more than if you had a good credit rating, but it |
| loan your chances will improve significantly. For a | | | | should still be reasonable and affordable! |
| secured loan you would normally need to offer your | | | | |