Most of the times, it happens that bad credit scorers are denied for loan in the financial market. But, this is not fare because bad credit can happen to anyone. Bad credit scorers must get a chance to prove their creditability. And, financial market has provided them with an opportunity in the form of bad credit secured loan.
In bad credit secured loan, the borrower is required to place an asset as collateral against the loan amount. The loan amount which gets approved depends upon the equity present in the collateral. More is the equity; more are the chance of getting larger amount being approved.
Majority of the banks, financial institutions and building societies provide bad credit secured loan in the financial market. In addition to the lenders in the physical market, there are many online lenders who offer better and low rates. There are several advantages of availing loan from an online lender; some of them are as follows:
o Faster approval
o Better rates
o No processing fees
In the financial market, secured loan is known for its low rate of interest. On the other hand, bad credit secured loan, being a product of bad credit market also carry low interest rate but is higher than regular secured loan. The lender usually offers two types of interest rate that are fixed rate of interest and flexible rate of interest. The borrower can choose any of the type as per his needs.
Bad credit secured loan is also available to both kind of credit scorers. In other words, good credit scorer and bad credit scorer can easily avail bad credit secured loan on competitive rates. Most of the times, it is seen that bad credit scorers are offered with high rates as compared to the rates being offered to good credit scorers. However, bad credit scorers can also avail loan on low and better rates by placing high equity collateral.