If you have a bad credit rating then you should know it will be used against you when applying for a variety of financial products including loans. Not only will you struggle to get approved for a loan but you will also find that those with a better credit rating will be able to borrow more money and will be offered considerably lower interest rates. If you have bad credit but need a loan there are lenders out there that specialise in offering loans for people with bad credit. Bad credit loans are available to people who have been refused elsewhere for a loan and have bad or no credit. Usually, you can take out more money for more time as opposed to a payday loan. These loans can also be used to rebuild your credit rating and you will find that if you make your repayments on time a bad credit loan can result in improved rates and loan conditions over time.
If you have a bad credit rating lenders will assume you have the inability to make payments on time so you are considered to be more of a risk. With this in mind bad credit loans have a high interest rate because you are considered to be more of a risk and the exact amount you can borrow may depend on how bad your credit history is. Some bad credit loans are unsecured loans which can mean lower interest rates however this does mean that should you default on your prepayments you do risk having the asset you have put up against the loan, usually your home or car, seized. Make sure you compare different bad credit loans, looking at all the different features before committing to a lender. Always read the terms and conditions fully before you apply and don’t be afraid to ask any questions