Loan
Amount & Interest Charged
Through a secured bad credit personal loan you can borrow
upto 125% of the value of the asset you provided as
collateral or upto £75,000, though the actual
amount varies from lender to lender. The loan amount
also depends upon the income level, and whether permanent
source of income or temporary. Though the loan amount
varies from lender to lender.
Cost of availing a bad credit personal loan, i.e. interest
charged on loan again varies from lender to lender.
It also depends on the profile of borrower in terms
of his credit score, source of income, age etc. Therefore,
key factors in interest rate are:
- Variable interest rates
- Monthly installment payments depend on loan amount
and interest charged, therefore it is also variable.
Payment Duration
Usually duration for repayment ranges in between 5 years
and 25 years. In this case, a borrower has two options:
First, to go for short duration of loan in which case
the installment amount is usually higher but the hidden
advantage is that the borrower can payback completely
within a short span of time. In this case, cost of loan
i.e. interest charged is comparatively lower.
Second, to go for longer payment duration, in which
the installment amount becomes less compared to an installment
for short duration loan. In this case, payment of a
small sum every month becomes quite easy but such installment
needs to be paid every month for a longer duration.
Use of Bad Credit Personal Loan
You have complete freedom to decide about the usage
of the loan amount, once it is credited in your account.
Whether you want to renovate your house or you are falling
short of cash to buy a car, you can use this loan for
anything and everything. Infact, at time borrowers use
bad credit personal loan to pay credit card bill and
reduce other debts to reduce their monthly outgoings
to a more manageable amount
To conclude, a bad credit personal
loan is designed for people who have bad credit record.
Therefore, even you have bad credit history, you can
avail bad credit personal loan. The loan amount, interest
rates and payment duration varies from lender to lender.
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