This is a type of loan that has been architected and developed for a special lot of the economic system who end up getting bad credit ratings. Any person can end up having a bad credit history due to different causes like inability to make the repayments of prior loans on time or simply default due to shortage of funds. Bad credit history may not only be because of bad loans or adverse credit card records. People who have not obtained any kind of financial loan or debt product may also be considered to be risky by the lending institutions. This is because no prior information is available about them and lenders find it a little ambiguous for giving out loans.
In normal situations, most people consider it impossible to get access to loan products if they have a bad credit history. To overcome this drawback and to meet the requirement of this segment of the economic system specialized loan products and cards have been designed in the UK and all around the world. In the UK alone, you may find hundreds of small and big companies working in this segment and providing bad credit loans to their customers. Creditpoor.co.uk is one such example where the potential borrower can log on to through the internet and get the information required for procurement of the loan. If you are able to meet the necessary requirements, you may easily apply for the loan product online. The terms and conditions of the loan for bad credit provided by the creditpoor.co.uk are quite flexible and pricing is also competitive with the market.
Advantages and Disadvantages:
In the UK markets, many companies like the Credit.co.uk are offering bad credit loan products to a wide range of customer base. According to experts and finance professional, these types of loans have both positive as well as negative characteristics. Some of the common advantages are provided below:
•The first and foremost advantage of a bad credit loan is that the consumer is able to get access to the much needed amount of money, which would not be possible to get due to his or her bad credit history.
•Such a loan can be very useful for people who are in dire need of money to make a necessary purchasing operation or use this money to settle existing financial obligations.
•The money acquired through a bad credit loan can help the borrower bring about positive improvement in his or her existing credit position and score. By making payments on time and full filling other terms and conditions regularly the credit rating will be fairly improved.
Some basic disadvantages of this loan product include the following:
•The prices or interest rate against which a bad credit loan is available is quite high compared with other regular debt products. This is because of the high risk of default and loss associated with it due to bad credit history of the borrower.
•You cannot be 100% convinced that the loan will be approved. The company still keeps all the rights reserved with their management.