If you have a bad credit rating you may be wondering if a secured loan is still an option for you. The good news is, secured loans are generally easy to get as they are secured on your home. It is up to you to decide whether it is worth the risk as the creditor will not care very much once your home is used as equity. After all, if you fail to keep up with repayments you will end up losing your home so either way the creditor wins. However, that is not to say that all creditors will accept people with a bad credit history and even if they do, there could be added terms and conditions for you to follow. Secured Loans and Bad Credit Often you will find that if you have a bad credit rating, the interest rates will be higher.
Now this is usually mainly done by lenders giving out unsecured loans but it can also apply to secured loans too. So, this means that although you are applying for a secured loan, you could end up being charged a monthly interest rate the same as an unsecured loan. It all depends entirely upon the company that you are applying to. It is always better to compare various loan plans in order to find one to suit you.
There are actually companies which are set up especially just to lend people with a bad credit history loans. These are usually the ones that charge the most though there are some good rates to be found, it is just a matter of doing your research. If you are unsure as to whether your credit rating is bad or if you have been told that your credit rating is poor and you are not entirely convinced, you can find out for yourself. All you have to do is go to a credit reference agency and they will be able to tell you what your credit record is like. On it you will be able to see whether everything is correct. Things such as late payments on credit or store cards can often affect your credit rating yet many people do not realise this.
So, if you do think that your credit history is OK you may be wrong and it is always worth checking it out. There is a small fee attached to this service however, but it may be worth it in the long run. Overall secured loans are generally available to everyone even if you do have a bad credit rating. The only downside is that you may have to pay more because of it.
Derek Rogers represents Accepted, a UK based secured loans site.