If you made payment mistakes in the past that does not mean you are no longer eligible for a new loan. The loan market in fact is full of lenders providing loans to poor credit people. Poor credit loans are now available with ease thanks to plethora of loan offers to such borrowers. In these days poor credit loans are being made available for variety of purposes like home improvements, purchasing a new or used car, going to a long holiday tour, celebrating weeding or for debt consolidation.
All those people with payment mistakes like late payments, arrears, payment defaults or as a result of these county court judgments are eligible for Poor Credit Loans. Main concern of lenders in giving poor credit loans is that the borrower must have a good ability to repay the loan. Therefore before applying for the loan you should be having a convincing repayment plan in place. The plan includes your income and the money you save each month to repay the loan installments regularly. You should note that lenders are now more interested in seeing your repaying ability rather than poor credit.
Prior to applying for the loan you should also check your credit report or any error in it may unfairly lower your credit score. Also if your credit score is too low then lender will charge interest at very high rate. So better improve credit score first by clearing some easy debts. Applying with an improved credit score will surely help in taking the loan at better rate.
You can opt for secured or unsecured poor credit loans. Secured poor credit loans are given against your home or any property. Its main advantage is comparatively lower interest rate. Also you can borrower greater amount that can be repaid in larger duration of 5 to25 years. Unsecured poor credit loans come without collateral. But interest rate goes higher. Smaller amount is approved for shorter duration of 5 to 15 years.
Online lenders should be preferred over banks and financial companies for competitive rates on poor credit loans. Take rate quotes of lenders to compare them. This way you are likely to find out a suitable deal. And pay off the loan installments in time so that your credit score improves.
