You may have heard of bad credit loans which are becoming increasingly popular. This is because they are designed for those who have been rejected elsewhere for a loan because of a poor credit history, CCJs, defaults, or those who have been blacklisted. They are also very popular because like payday loans there are minimal credit checks, you can have the money with you very fast but unlike payday loans with a bad credit loan you can borrow more money for more time. You will also find that these loans are much more flexible.
A great feature of a bad credit loans are that by using the loan properly, and making your repayments on time it can help to repair the damage to your credit report which will improve your future chances of borrowing. With the right lender, responsible repayment of a bad credit loan can result in improved rates and conditions over time.
Unfortunately, much like payday loans, bad credit loans have considerably higher interest rates when compared to other types of loans. This is because as you have a bad credit rating you are considered to be a high risk. When deciding on the right loan for you remember that the exact amount you can borrow will depend on the extent of your credit history. You should also bear in mind that that if you do not repay the loan you could end up worsening an already low credit score. It is important that you take the time to research what is available so you can sure you find a good deal. One of the best ways to find the loan best suited to you is by comparing different products against each other.