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Bad Credit Secured Loan – Easy Finance without Credit Checks
By Aldrich Chappel
You own a property and want to take a low cost loan on offering it as security to the lender. Your bad credit however may become an impediment as lenders are still apprehensive about safe and timely return of loan. But if you are aware of ways to take a bad credit secured loan, the loan is available in easy and hurdle free manner.
Bad credit indicates to the lenders that you have not been regular towards paying back loans. Due to repeated payment defaults you might have faced county court judgment or you filed for bankruptcy. This is reflected in your credit score. On FICO credit score scale ranging from 300 to 850, credit score of 580 or below is labeled bad credit and considered full of risks for a loan offer. Bad credit however can easily be offset as a factor in taking bad credit secured loan.
Lenders are apprehensive about the return of a loan only when they have no alternate for recovering the loan amount. In case of bad credit secured loan, risks for lenders are remote because it is a secured loan. Bad credit secured loan is provided on taking collateral from the borrower. Any property of the borrower like home, automobile or jewelry can serve the purpose of collateral. In case of a payment default, lender is free to sell the property for recovering the loaned amount.
Under bad credit secured loan, one can borrow a greater amount depending on higher equity in the property placed as collateral. So for greater borrowings you should offer property like home which usually have high equity as this secures the loan more. Usually lenders offer £5000 to £75000 as bad credit secured loan. Despite bad credit, lenders offer bad credit secured loan at lower interest rate. Bad credit secured loan are offered for a larger repayment duration ranging from 5 to 25 years. Larger repayment duration results in lower monthly payments towards installments of the loan. In other words bad credit secured loans provide you ample duration for recovering from bad financial phase.
Do not rush to a particular lender and instead compare different bad credit secured loan providers. Bad credit secured loan providers can be searched easily on their websites. Compare their interest rates and terms-conditions. Prefer applying online to suitable lender as online lenders process and approve bad credit secured loan fast.
Thus through bad credit secured loan you can take a lower interest rate loan without many enquiries from lenders. Pay off the installments regularly for escaping debts. As you pay off installments, your credit score also gets improved.
About the Author
Aldrich Chappel has been associated with Get Secured Loans. Having completed his Masters in Finance from Lancaster University Management School. To find online secured loan, bad credit secured loan, personal secured loan mortgage uk, secured debt consolidation loans visit http://www.get-secured-loans.co.uk
Article Source: http://www.simplysearch4it.com/article/43181.html
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