Loading...There was a time when lenders use to see bad credit holders as potentially risky customers to lend money to. But with the increasing number of people having poor credit, lenders started seeing a huge potential market there and came up with financing plans, especially for adverse credit holders.
A person can get a bad credit tag due to defaults in previous debts, arrears, declaration of bankruptcy, CCJ etc. it means that the credit rating of that person is below 620 which is not seen as a good one in the loan market.
But loans for bad debt have reversed the situation enabling bad credit holders also to secure cash when they need it.
Use of loaned amount
These loans can be taken in any form – bad credit home loan, bad credit car loan or bad credit personal loan etc. and the use of the money depends on which scheme you have applied for. But you have a certain degree of freedom to use the money wherever you want.
The types:
These loans can be secured in secured or unsecured forms. In the case of secured ones collateral has to be placed against the money and it will help to negotiate with the lender to a certain degree. But with unsecured bad debt loans, there is no need for any security.
These loans can be applied for either long-term or short-term schemes. In the case of the first one, money can be repaid within 10 to 25 years and rate of interest rate will be less. But with short term repayment terms will be 3 to 5 years and the interest rate will be high.
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