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Monday, August 26, 2013

Loans For People With Bad Credit


There are many loans still out there for people with bad credit. If you have had a run of bad luck recently and have defaulted on your loan or credit card repayments then your credit agency will have made a note of it on your credit file. Similarly, if you have unpaid fines or county court judgments against your name, your credit file will have it logged.

Perhaps it wasn't so much a case of bad luck that got you where you are now but rather mismanagement of your finances. Sometimes we pay heavily for our weaknesses and if budgeting isn't your strong point then you are probably up to your neck in debt. If you are looking for a loan with bad credit, you will know how tough it is out there to get the finance you need. That's why there is a whole new brand of loan just for you, called bad credit loans or simply loans for people with bad credit.

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Lenders are licking their wounds right now because their greed, coupled with their misplaced confidence in borrowers to repay sums they could simply not afford has meant a lot of banks are fiscally challenged. Fiscally challenged being skint. Therefore a lender is going to want some pretty stiff guarantees you will repay what you borrow from them. Banks typically have two main ways of protecting their assets.

They will charge you higher than average interest rates They will ask you to secure your home against the loan.

If you are a homeowner you will greatly increase your chances of getting a bad credit loan. Always shop around, you may have to be a little more determined than your average borrower but comparing prices can save you a lot of money.

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