Financial imbalances happen from time to time, and there are several occasions when such imbalances can even challenge people’s existing living conditions. Loans are the option to think about, but not until you have some type of fixed capital or collateral to put up against the loan. This is usually true in the case of secured loans. The borrower has to show caution of him, especially when he applies for secured loans. If the borrower reels under the repercussions of poor credit history, the lender’s chances of approval simply diminish.

Poor credit is, minutely, a high-risk category, and that’s where brokers get disinterested. Repayment is quite a risky venture here, and no broker or even direct lender is seriously interested.

But this doesn’t mean there isn’t an easy route to cash credit. You must apply in the appropriate loan category that is precisely related to your financial condition. Bad credit unsecured finance is highly regarded among brokers and direct lenders. Credit is disbursed directly to the borrower’s registered account, once all paper processing is complete and the deal is finalized.

Unsecured Loans and Writing Your Success Story

Bad credit history is often the result of a meltdown economy and is often the result of poor decisions made by an individual. Credit flowing through the unsecured loan route works as an antidote for people with bad credit, and even for those who are in dire financial straits. But, the credits are not disbursed because you demonstrate your intention to borrow. There are over 101 POINTS that a lender would like to discuss with you before allowing credit to flow. But, the 3 most significant points are:

Point 1

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 credit judiciously.

Item #2

The loan limit – Unsecured loans are available to people with a credit limit ranging from £1,000 and £7,000 respectively. The repayment term of the loan is also limited to 3 years. The final limit is set by the lender after making a judgment on various relative factors.

Item #3

The interest rate – Generally, the interest rate charged by the lender settles on the higher side. The element of logic applies here. When no collateral is charged against the loan, the lender has the privilege of offering high interest rate loans. The lender sees a high interest rate as the security of repaying the loan on time.