When you have some old payments in your name and you have not cleared them, then the lenders think that you carry risks. So, a normal loan may not be available to you. Instead, bad debt secured personal loan is what you can take resort. However, the loan approval will depends on many factors. You should borrow money in such a way that it is not a burden on your finances.
These loans are approved only when the borrower has satisfied the lenders about safe and timely return of the loan. You should approach the lenders with a convincing repayment plan. payday loansYour credit history will play a determining role in the loan approval. It is advisable to improve your FICO rating, which may take few months.
Bad debt secured personal loans are given against the borrower’s home or any property, as collateral. The loan amount will depend on the value of the property. Usually, these loans are meant for greater amounts, ranging up to 75000. you can use the loan for host of purposes like clearing old payments, home improvements, purchasing a car, holiday tour and wedding.
The loan can be repaid conveniently in 5 to 25 years.payday loans no credit check However, you should repay the loan in shorter duration, for saving the interest payments. If you carry the loan for many more years, then you are bound to end up with high interest payments.
As far as bad credit history of the borrowers is concerned, these loans can be availed despite late payments, defaults, arrears and CCJs. this is because such a borrower is putting a valued property at stake. However, the lender will repossess the property in case of payment default. Hence, borrow smaller amount, which you can repay on time.
Apply for rate quotes for making an extensive comparison of the lenders, who are providing bad debt secured personal loan. You can find some suitable offers having lower rate and fewer extra charges.