Bad credit secured loans

There are many reasons why lenders refuse loan applications. For those homeowners who apply for an unsecured personal loan and are subsequently rejected this can be extremely frustrating, especially as the lender is not required to inform you regarding the reason for the failed application.

Bad Credit is often a loosely used phrase to describe someone who has either defaulted on previous loans, incurred CCJ’s (County Court Judgements) or who has a poor credit score.

Some secured lenders and brokers however, are willing to lend money to those homeowners who are classed as a bad credit risk on the basis that any loan is secured on any asset or property that is owned by the applicant. The disadvantage of course is that your home is at risk if you default on future loan repayments.

It is worth noting certain lenders specialise in bad credit secured loans and other lenders do not. Therefore, consider researching each company's lending policy, interest rates, and any applicable early settlement charges before applying for a loan. Remember, it is the case that each application for a secured loan is sometimes noted on your credit record and some Lenders will take this information into account when assessing applications from homeowners.