Adverse Credit Secured Loans

Why some loans could last forever

Be wary when you look at the rates for adverse credit secured loans: many firms highlight exceptionally low monthly repayments, but if you check the small print you'll see that the actual loan period seems to last forever. Always use the APR rates to compare different lenders' loans.

When it comes to adverse credit secured loans, lenders tend to highlight the positives and draw attention away from the negatives. That's why you'll often see loans advertised on the basis of exceptionally low monthly repayments, but when you look at the actual loan period it's over ten years or more; other lenders quote low interest rates but don't quote the APR (Annual Percentage Rate) – which is usually much higher, especially in the case of firms who pitch their products to people in financial trouble.
When you compare adverse credit secured loans, the APR is the most important figure: it is based on the total cost of borrowing, which includes not just interest but also administration fees and other charges. With some adverse credit secured loans, the administration fees can be massive – and the details are often buried in a site's small print. As a result the APR is the most reliable indicator of the cost of a loan, and a loan with an APR of 10% will be much cheaper than one with an APR of 12%.

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