Types of loans for bad credit in the UK

Having poor credit history or having bad credit score leads towards bad reputation in the market. The lender will not trust you anymore to lend you loan. People who have bad credit in the UK can’t available credit facility due to bad ratings. Is there any way out? How you get loan if you have bad credit? How to apply for bad credit loans in UK? These are the entire question that one must be looking to address when going to apply for a bad credit loan.  Bad credit loans in UK are the loans that are given to assist in improvement of credit score and financial status of a specific person.  This type of loan facility is given to people and is very rewarding. Either you are salaried person, venture owner, housewife, self-employed or belongs to any other profession, you can avail this loan opportunity.  Anyone who is having bad credit score or history can take full advantage of these sorts of loans. However you have to calculate the interest rate and amount to be pay back, you can check it via LogbookCalculator.com

People who want to take loan but due to bad credit history their application got reject can apply for this loan. However the bad credit loans are of two types.

  • Secured loan
  • Unsecured loan

The secured loans are the loans that are given against security. Security could be anything that possesses some value. It could be commercial asset or personal asset. The asset must be under the name of borrower.  Since these loans are covered against collateral security so the amount of such loans are big. Logbook loans are one of its kinds. You have to pledge logbook as security but you are entitle to use your vehicle freely and lender will not stop your freedom to use your vehicle.  These secured loans are given according to the value of security submitted to bank. The bank will access the current market rate of the security and grant amount of loan accordingly.

The unsecured loans, you don’t have to pledge anything as security. This is considered as risk free loan. But this opportunity doesn’t mean that borrower is not going to payback amount in given time. The lender in such cases will take legal action against borrower in case of non-payment of loan.  In unsecured loans, you don’t need to submit your credit report to get this, but in unsecured loans the interest rates are usually high.  The reason bad credit loans are given is to facility the customer to cover the damages caused by bad credit report.  There are many lenders in UK that are offering unsecured bad credit loans, for details you can check www.logbookcalculator.com as well. However you have to select the right lender among the top choices.

Don’t worry if you are having bad credit history in UK, you can still get the bad credit loans. Many banks and financial institutions are helping you in this regard.