What is a bad credit loan?
It is important to understand what a bad credit loan is. The term is often used by individuals who have had adverse credit issues in the past and who are searching for a new loan. Technically, there is no such thing as a bad credit loan and the term itself does not give any real information about the applicant or their credit history. A loan, no matter the purpose is either unsecured or secured.
Types of loans for bad credit
Chances are, if you have recently had adverse credit then you will probably not qualify for a loan with a low-interest rate. The following types of loans are generally available for applicants with bad credit.
- Unsecured personal loans
- If you are looking to combine existing debt into one repayment then a debt consolidation loan should be considered
- If you have a close family member who can guarantor your loan
Things to consider
If you do have an adverse credit history and you are looking to apply for an unsecured loan then it is always worth considering the following information.
- Interest rates may vary dependant on your creditworthiness
- Be sure to budget for your loan repayments
- Loan term - the longer your loan term the more you will likely pay in interest.
Find the right loans for you
Our service will allow you to apply for an unsecured personal loan in one simple application. We will then search our panel of lenders in real time and return you a loan offer from one of the lenders we work with. This all happens within a two to three minutes without affecting your credit rating.