Adverse Credit Secured Loan

If you are looking for an adverse credit secured loan, find one here

If you have a poor credit history but need a loan then an adverse credit secured loan could be a way for you to borrow money. If in the past you have missed loan repayments, had county court judgements issued against your name, entered into an individual voluntary agreement (IVA) or been bankrupt then you will have what is called "adverse credit". Bank and other financial institutions are wary of lending to people with adverse credit so an adverse credit secured loan might be your only option.

If you take out an adverse credit secured loan you will be charged a higher rate of interest than if you had a perfect credit history. However, if you make your payments on time for a certain length of time, the next time you need to borrow money you might not need an adverse credit secured loan, you will be eligible for a mainstream loan instead as your credit record will be improved.

Would this type of Secured Loan suit me?

An adverse credit secured loan will normally be secured on your property so these loans are for homeowners only regardless of whether the property is mortgaged or owned outright. If you default on the adverse credit secured loan then the lender might be able to repossess your house, so think very carefully about whether an adverse credit secured loan is the right option for you. Can you afford to lose your home?

The fact that you own a home means you will be able to apply for an adverse credit secured loan, if you don't own a property then you will only be eligible for an adverse credit unsecured loan.

There are companies out there that specialise in adverse credit secured loans. However it is important to shop around to find the best deal, a broker who knows about adverse credit secured loans may be able to help you.

When you take out an adverse credit secured loan, lenders will charge interest on the amount you borrow. This is known as the Annual Percentage Rate or APR. The APR on your adverse credit secured loan will depend on the amount of equity in your property, the lender's view of your ability to repay the loan, your income and your track record of managing credit.

Be Honest

If you have a less than perfect credit history, you have to be truthful about it when applying for a loan as lenders will find out about any bad debts and unpaid loans by doing a credit check with a credit reference agency such as Experian, Equifax or CallCredit.

These agencies collect information about you and allow banks and other institutions to check you out before offering you an adverse credit secured loan or any other kind of loan. They will check your name and address and your past credit history, including any county court judgements or defaults recorded against you.

When taking out an adverse credit secured loan, read the credit agreement carefully before signing as it is legally binding. You will also be required to prove your name, ages, address, income and that you own your house.