Getting accepted for a loan can sometimes be difficult. If you
have changed addresses and jobs several times, are self-employed
or have a poor credit history our team of leading lenders will
flexibly consider each application, taking into account all
circumstances. Poor credit loans could make available the money
you need to do home improvements, go on a much needed holiday or
pay off spiralling credit and store card debts.
You have a number of options with poor credit loans. If you are
a homeowner you could consider a secured loan. This means that
you will be using your home as collateral or security against
the loan and because the lender is taking a lower risk you will
get a lower interest rate. This is probably the cheapest option
for you. You need to be aware though that if you fail to meet
the repayments on poor credit loans and do not pay back the
loan, you will be putting your home at risk of repossession.
Unsecured loans need no backing collateral or security but
because this is a much greater risk to the lender, interest
rates tend to be higher than for secured loans. It is very
important that you make sure that you can afford the repayments
before you agree to the loan.
If you are considering poor credit loans because you are finding
it difficult to pay all your creditors each month then a debt
consolidation loan may help you to bring this under control. You
could find that your monthly repayments are less than the sum
you are currently paying and the new loan will reduce some of
the pressure you may have been under from your existing
creditors. You will however be paying over a longer period. The
first step is to work out exactly how much you owe at the moment
and this you'll get by asking each of your creditors for a
settlement figure. A balance alone will not reflect any early
settlement charges which some creditors charge if you decide to
pay off your debt before the agreed date. Once you have a total
you'll know how much you need to borrow to settle the lot. Do an
income and expenditure exercise to make sure that you will be
able to afford the repayments on a new loan.
Poor credit loans are repayable monthly and will include an
interest charge by the lender. This is called the Annual
Percentage Rate or APR and the exact interest rate you are
quoted will depend on the amount you want to borrow, the length
of time you'll need to pay it back and the lending company's
assessment of you individual circumstances and ability to pay
back the loan as agreed. A good way to compare poor credit loans
from different lenders is to look at the typical APRs they
quote. The typical interest rate is only an indication of what
the majority of successful applicants was granted in the past
but will tell you how competitive the various lenders are.
Lenders also refer to fixed and variable interest rates and
being familiar with these terms could help you choose the best
loan. A variable interest rate is linked to the bank base rate
and that means that the monthly repayment on a loan could go up
and down depending on what happens to the base rate. A fixed
rate on the other hand means that your repayments stay the same
each month no matter what happens to the bank base rate.
About the author:
This information on poor credit loans was provided by 24 Hour Loans. Offering
information on loans and a fast application to a wide range of
bad credit loans products.
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