Tag Archives: high risk
High Risk Bad Credit Personal Unsecured Loans: Security No Problem for Bad Creditors
High risk bad credit personal unsecured loans are endowed to people with adverse credit history without keeping any security. The lenders have a great risk on their money as then borrower has severely chequered credit score and no security is kept. These loans are easily available to people having CCJs, arrears, any default payment or bills. In order to avail these loans you must have a good financial status as the lender grants loans on the basis of your financial situation. Thus if you have a good paid job and handsome bank balance then it is just a matter of time for you to get such loans. In order to get the high risk bad credit personal unsecured loans sanctioned you have to fulfill some requirements stated below:
a) you must be the resident of UK
b) you must be above 18 years
c) you must have a regular employment
d) you have to submit the proof of you name, address and employment
e) You will have to give the details of your monthly income and expenditure.
The loan is approved quickly if you satisfy these prerequisites. The application process is simple and you only have to fill up an application form available in lenders office. The loan amount approved may go up to £25,000 with a repayment period of 10 to 15 years. The interest rate is a real matter of concern as it is higher then other conventional loans. This is due to your poor credit history and lack of security. So it is recommended to search the market well before going for a deal. Also you must pay off the debt in time and avoid any extension in repayment period which in either case will increase the interest rate more.
Summary
High risk bad credit personal unsecured loans are offered to people with bad credit history for their personal use without keeping any security. The high risk involved in these loans is compensated by the high interest rate so you must be careful before going for it. Also timely repayment is must so that you check the flow of your money in the hands of lender.
Unsecured High Risk Loan
An unsecured high risk loan can be hard to find, and even harder to find is an affordable interest rate, but there are things you can do to better the situation.
When lenders look at applications they decide who to lend to based on how much of a risk they are taking with each applicant that they won’t be repaid. When you have a bad credit history the lender sees this as a pattern, and decides it is riskier to lend to you than other people. If they decide to still lend to you, they raise the interest rates according to how much of a risk they feel they are taking. To ensure approval of your application, and to get offered the best interest rates possible, you want to show the company reasons you are likely to make your payments on time.
Unsecured high risk loans are given largely based on your credit score. Your score is determined based on the information in your credit report. The first thing you can do to better your application is to fix anything you can on the report. If accounts you’ve already paid are still marked open or overdue call the company and keep talking to them until that is fixed. If you have high credit card balances paying these down will also help a lot.
Another thing you can do is offer some form of collateral and apply for a secured loan, instead. In this case if you fail to make payments the company will repossess the item you offered as collateral. This greatly lowers the risk the lender is taking, and you are rewarded with lower interest rates, and an easier time finding approval. Of course, this increases the risk you are taking as well.
Other than doing any of the things stated above, the best thing you can do for your unsecured high risk loan application is play up your strong points. Do you have a steady income? Have you been with your current employer for several years? Do you have a budget plan that shows your expenses, and how you’ll be able to easily afford your monthly payments? These are all things the lenders will be interested in, and will help you. Also, if your credit issues are all around one particular event, like medical bills, divorce, etc, then have a short one or two sentence explanation prepared to tell the lender. You do not want to dwell on this, but companies do want to hear how you came to be in that problem in the past, and why it won’t happen this time.
Once you get funding, remember to make your payments on time. This unsecured high risk loan may be your chance to build up a positive credit history so you’ll have an easier time in the future.