Even if you have been declined a loan elsewhere, you may be
given the go-ahead for one of our adverse credit loans from our
top lenders. We offer a wide variety of products, loan amounts
and repayment terms and our team of professionals will do their
best to find the most suitable product for you with the lowest
interest rate possible.
There are basically two types of loans available, secured and
unsecured loans. Secured loans are mainly for homeowners because
the borrower uses their home as security or collateral against
the loan. This is a relatively low risk for the lender because
they are protected in the event of the borrower's inability to
repay the loan - the result is that interest rates are lower for
secured adverse credit loans. Unsecured loans require no pledge
of collateral to secure the debt but because this represents a
higher risk for the lending company, interest rates are higher.
Perhaps you are considering adverse credit loans because you
want to consolidate debts from credit and store cards and other
loans. If you are finding difficulty meeting your monthly
repayments to your creditors then a debt consolidation loan
could be an option. You may be able to reduce your monthly
repayments to less than the sum of your current debts but you
will be paying for a lot longer. These loans also help to reduce
the pressure you may be under from your existing creditors and
leave you with just one creditor to deal with. Before you find
out how much adverse credit loans will cost you, you'll need to
find out exactly how much you owe at present. Ask your creditors
for settlement figures and not balances as the total must
included any early redemption penalties (an amount charged by
some creditors if you settle your debt before the initially
agreed due date of the loan).
It is vital that you make sure that you can comfortably cover
the repayments on adverse credit loans or you will be putting
your home at risk of repossession in order to repay the loan. A
basic monthly income and expenditure will also help to give you
a clear picture of your financial situation. Don't forget to
include an amount for emergencies and unforeseen expenses.
Being familiar with the different ways in which lenders refer to
interest rates will help you to make the right choice of adverse
credit loans. The percentage that you are charged monthly by the
lending company is called the Annual Percentage Rate or APR.
Although lenders quote typical rates, these are only indications
and the APR you are offered will depend on the type of loan you
get, secured or unsecured, the loan amount, the term and the
lender's flexible assessment of your situation and ability to
repay the loan as initially agreed. You will also come across
fixed and variable interest rates. Fixed rates mean that your
monthly repayments are set at the outset and will remain
unchanged no matter what happens to the bank base rate. Variable
interest rates on adverse credit loans could cause your monthly
repayments to go up and down as the bank base rate fluctuates.
This could make it difficult to stick to a budget but you will
benefit if interest rates drop. If they increase, your loan
could cost you a lot more.
About the author:
This information on adverse credit loans is offered by 24 Hour Loans. Providing
information on loans and a fast application to a wide range of
adverse credit loans products.
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