Secured Bad Credit Loans are Becoming the Norm
Written by: Gordon Goodfellow
Secured bad credit loans used to be viewed with some derision in
times gone by. Today they are fast becoming the norm, and
consumers should be glad. Here are seven excellent reasons why
people should all celebrate it!
1. There is a lot of easy credit being offered these days and
intelligent consumers are increasingly discovering that credit
checks are being recorded on a daily basis. This should be taken
as a positive thing as it leads away from old fashioned lending
by the banks and opens up a more varied lending process for
everybody which embraces a much wider market.
2. Banks are therefore not the only source. Banks prefer to have
as much guarantee of security as they can, so they can afford to
pick and choose the customers they lend money secured bad credit
loans to. But using a 'one size fits all' attitude is definitely
not good news for the majority of us, because we are all
different. Knowing that banks may be this choosy means that
people are able to go elsewhere. So in the long run the laws of
the marketplace have provided us with a much wider number of
sources when it comes to secured adverse or bad credit loans.
3. Secured loans are usually less expensive - sometimes far less
expensive - than unsecured loans. This is because of the risk
aspect. If a financial provider knows that the loan amount is
tied into the borrower's property then it knows that the
borrower has an extra responsibility to keep a roof over his or
her head. Therefore the actual cost of borrowing through a
secured loan will tend to be that bit less for this reason.
Simply, the APR figure for secured credit loans will be lower.
This can be seen clearly on any loan publicity material.
4. Longer repayment times. Hand in hand with the fact that the
borrowed amount will be less expensive, the repayment period for
secured borrowing can generally be set longer and thus the
monthly payments will be somewhat lower for that reason
(although economies of shorter borrowing times should also be
5. Personal service. While the secured loan will need more
procedures and will generally take longer, people are likely to
receive a more personal service than with an unsecured loan,
where the application procedure is usually as anodyne and
faceless as one simple application form. Most borrowers like to
be treated like real people than just numbers or sales figures.
6. The number of secured loans available. As well as ordinary
secured bad credit loans for any purpose, specific plans for
varying types of loan have also grown up. Non-status loans, debt
consolidation loans, and both personal and business advances are
examples. Special plans will usually also exist if the house
your loan is secured on is unusual. For example, brick and tile
is the normal form of construction, but if your house is
concrete based, or timber framed, or even has a thatched roof,
special plans are there if you seek them out.
7. More personal circumstances are considered nowadays.
Improvements in financial risk management assessment have meant
that lenders are prepared to consider secured bad credit loans
where such a thing was not possible in the past. The
self-employed, in particular, are not treated as they used to
be, especially with the recent trend toward self-certification.
Three years of audited books are no longer automatically
required from those people who work for themselves. Defaulters,
people with CCJs, IVAs and even discharged bankrupts are now
regularly considered in today's evolving world of finance.
Increasingly, people take larger financial risks, especially the
entrepreneurial minded. The market is evolving to take account
of bad credit loans, because it must.
About the author:
Gordon Goodfellow is an Internet marketer, and market and social
researcher. His websites dealing with secured bad credit loans
take into account all possibilities that a potential borrower
might present. For what this could do for you go to Secured Bad
Credit Loans .
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