The recent trend for the most of the borrowers now is to go for loans which do not require any collateral pledging. Even the lenders are ready to offer the finances, but problem arises when the applicant is having serious bad credit problems. Without attaching any collateral and that too with credit problems, lenders have to undertake a lot of risk. However, now the lenders are offering High Risk Unsecured Loans for those borrowers who are struggling to obtain finances without pledging any collateral.
Just as the name refers, these loans are especially designed for those borrowers who are considered to be having blemished credit history. Bad credit occurs when a borrower has failed repeatedly to make repayments on past debts or have arrears, CCJs, IVA etc against their name in the credit record. Usually a borrower with a credit score less than 580 is considered to be a bad credit borrower.
The amount under these loans is approved on the basis of your income and repaying capability. If you can convince and assure the lender about timely repayment of the amount, lenders will surely approve the loans. Further by taking a repayment plan with details like the amount required, purpose of availing the loans along with the repayment period will surely help to a great extent. Besides your income details, recent bank statements etc play a crucial role in these loans.
Usually, through these loans you can borrow amount anywhere in the range of £1000-£25000 for a period of 6months – 10 years. The amount availed can be used to meet a variety of needs like home improvement, consolidating debts, taking care of pending bills, credit card dues, educational purposes and so on.
Lenders approve these loans with a high rate of interest, so as to marginalize the risk factor involved. Although a proper research of the market will enable you to spot lenders offering competitive rates.
High risk unsecured loans can be best availed from online lenders. The loans are instant and lenders due to intense competition offer these loans at competitive rates. Besides, the loans offer an opportunity to you to improve you credit score by making regular installments in a timely manner.
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