Loans | Bad Credit Loans | Poor Credit Loans | Unsecured Loans

If you have a poor credit history and own a car then a Logbook Loan could be the right loan for you. The way Logbook Loans work is that Logbook Loan lenders lend to individuals on the condition that they give up their Logbook and usually a spare key and other car documents for their car as security against the loan. The person taking out the loan will usually be able to hold on to their car and drive it as normal throughout the duration of their loan which can range from any period of around 1 to 36 months.  

The amount Logbook Loan lenders lend tends to vary between £500 and £5000. The main disadvantage to this type of loan is that if for any reason the person taking out the loan cannot make the repayments for the loan then the Logbook Loan Lender has the right to repossess your car. In addition to this due to the greater risk a Logbook Loan Lender is taking with lending to an individual with a poor credit rating the interest rates on this type of loan tends to be higher.  With this in mind it is advisable to pay back a Logbook loan as quickly as possible as the quicker you pay back the loan, the less you pay.

Consolidation loans are great if you want to pay all of your debts off in a series of single monthly payments.  They make things easy to organise but at the same time the total amount of interest which you are paying may slightly increase. Consolidation loans are right for certain people but if you are exceedingly organised and can make your payments this may not be the right loan for you. It is worth discussing any loan or debt with an independent financial advisor before you’re find yourself with financial obligations you don’t want.

With a guarantor loan you have to find someone who trusts you enough not to default on the loan which the guarantor loan company offers you. The guarantor is likely to be a friend or family member and in the case that you do not pay the loan back they will have to pay the loan for you. If you default on guarantor loans you also stand to lose the relationship of someone who evidently trusts you a great deal. As always the terms and conditions are very important so make sure you are clear about what you are getting into.

Bad credit loans can be risky as many of them are secured. This means that security has to be given to the loan company that in the case that you cannot afford to pay your debts they will have an asset such as your home to sell and obtain the money owed. This means that if you default on a bad credit loan you could lose your house. Both lenders and brokers exist. The brokers can be useful for finding you a loan but at the same time some charge a fee even if they do not get you the loan which for somebody who is already in debt can be devastating. It is really important for you to read all of the small print to ensure that you don’t get yourself into trouble.

Payday loans are unsecured loans which are often available as loans for people with bad credit. They have a reputation for being expensive because they APR on these sort of loans can be very high. However, payday loans are available to those who are at a high risk to lend to because of their low credit scores which is why payday lenders charge a lot for their service.  Payday loans are usually intended to be borrowed for a month and the amounts involved are small so the loans should be affordable. It is really important to pay these loans back on time as they can become very expensive very quickly. There are also often penalty fees and charges which can really sting if you default on the loan. Always read the terms and conditions with payday loans so that you know exactly what you are getting into as this will prevent you from becoming the victim of any expensive financial debts.

Although it isn’t commonly known there are all sorts of loans for people with bad credit. These days it can be particularly difficult to find a loan especially when the banks are being so tight about lending.  However, there are options available to almost anyone. If you are looking to borrow a small amount of money then a payday loan could be a good option for you. They are expensive but they are one of the few types of loan where cash can be obtained almost immediately even if you have bad credit. If you are looking for a bit more or even a lot more cash then perhaps you should look into bad credit loans. These loans are often for much larger amounts of money, sometimes up to £100,000.  Bad credit loans can be borrowed for longer periods of time, usually between one month and five years giving you time to pay the loan back. Guarantor loans are useful for those with bad credit who do not necessarily have an asset they can use as security for their loan. Instead a guarantor is used to guarantee that the loan will be paid back and in the case of missed payments the guarantor will pay instead. Finally, if you are in trouble and have a lot of debts then consolidation loans can be used to consolidate your debts into a single monthly payment until your creditors are paid off.

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