Financial imbalances do occur from time to time, and there are several occasions when such imbalances can even challenge people’s existing living conditions. Loans are an option to consider, but not until you have some sort of fixed equity or security that you can put up against the loan. This is usually the case with secured loans. The borrower needs to exercise caution especially when applying for secured loans. When the borrower reels under the reverberations of a bad credit history, the chances of the lender’s approval dwindle.
Bad credit history is tediously a high-risk category, and that’s where brokers become disinterested. The repayment is a risky venture here, no broker or even direct lender is seriously interested in it.
But that doesn’t mean there isn’t an easy way to get a cash loan. You must apply under the appropriate credit category that exactly fits your financial situation. The unsecured finances with bad credit are highly regarded by both brokers and direct lenders. The loan is disbursed directly to the borrower’s registered account once all the paperwork is completed and a deal is completed.
Unsecured Loans and Writing Your Success Story
A bad credit history is usually the result of a melting economy, and in many cases it results from poor decisions made on the part of an individual. Credit flowing through unsecured loans acts as an antidote for those with bad credit histories and even those who are in dire financial situations. However, the loans are not disbursed because you express your intention to borrow. There are over 101 POINTS a lender will want to discuss with you before allowing the loan to flow. But the 3 most important points are:
The age criteria – The borrower must be at least 18 years old. This criterion is set by the FCA to ensure that the borrower is mature enough to use the loan wisely.
The credit limit – Unsecured loans are available to individuals with a credit limit ranging between ££1000 and £7000 respectively. The loan term is also limited to 3 years. The final cap is determined by the lender after evaluating several relative factors.
The interest rate – Generally, the interest rate charged by the lender will be on the higher side. The element of logic applies here. If no collateral is collected for the loan, the lender is in the privileged position to offer loans at high interest rates. The lender sees a high interest rate as security for the timely repayment of the loan.