Your credibility is something that’s always going to make a difference while getting yourself a loan. In the finance world, credibility is usually gauged by studying your credit history – credit record, credit score or credit statement. Your credit history always goes before you and makes an impression with regard to your capability of repaying the loan. It describes your past financial dealings to your lenders i.e. whether you repaid the loaned amount in full, whether you repaid it in time or simply whether you repaid it at all! Depending on your statement, your creditor is therefore either encouraged or discouraged into approving your loan. This is why credit history and Bad Credit Secured Loans are so important

Bad Credit arises when you make late payments or incomplete payments towards uncleared loans. Additionally, past bankruptcies, arrears, county court judgements, etc also label you with bad credit. A credit score is usually used to detect Bad Credit. Knowing your credit score is therefore very important.

Here is a description of how to detect your credit score:

Score 650-660 and above (Grade A+ to A-) : Excellent credit.

Score 620-650 (Grade B+ to B-) : Good credit.

Score 580-620 (Grade C+ to C-) : intermediate credit.

Score 550-580 (Grade D+ to D-) : Bad Credit starts here… Anything below this obviously puts you in the same category.

Individuals with bad credit cannot obtain loans in the regular market simply because they will be faced with hesitant lenders offering high interest rates, short repayment terms and small loan amounts. In addition, their collateral demands are bound to be extreme, reducing your repaying capacity to a close impossible. This is why a separate category of loans has been created to cater to those with bad credit, leading to Bad Credit Secured Loans. Moreover, having bad credit is not considered taboo any longer and the number of people belonging to this category is very large.

Bad Credit Secured Loans give those of you with bad credit an opportunity to get your finances back on track and also offer you a fair deal at borrowing money. The terms and conditions offered for Bad Credit Secured Loans are less rigid no doubt, but their collateral demand still stands. While lending money to those of you with bad credit, lenders too have to be reassured of repayment. This is why they demand collateral of relatively high value. In the event that you fail to repay the borrowed amount, a lender repossesses the collateral you pledged and retains his lent amount. Collateral demanded is usually in the form of your home, an operating bank account, a high valued automobile or even expensive jewellery. It is the reassurance provided by pledged collateral that reduces rates and makes loan terms and conditions rather flexible.

The amount that you can borrow with Bad Credit Secured Loans is the same as that with any regular secured loan - £5,000 to £75,000. However, this amount varies with the value of the collateral you pledge. The loan term usually ranges between 5 and 25 years, giving a rather long time frame within which you can repay the loan. The interest offered on Bad Credit Secured Loans is lower than that offered on regular secured loans, with a view to making the repayment process easier and affordable to those with bad credit.