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High Risk Personal Loans

The bigger the risk, the bigger the payments

As a quick look at any tabloid newspaper proves, there is no shortage of firms willing to offer high risk personal loans. However, many firms will only offer secured loans, and you'll find that most of the available products come with high interest rates.

Although high risk personal loans tend to come with high interest rates, it still pays to shop around. The choice is much smaller than for normal personal loans, but many lenders are still willing to provide high risk personal loans – especially if you need the money to buy a car.
Why a car? Unlike most high risk personal loans, car finance can be secured on property – which means the risk for the lender is much lower. Rates for unsecured personal loans for people with CCJs can be between 20% and 25% APR, but if the same loans are car loans then the rates are much lower: from 9.5% to a peak of 19.9%.
Even though the rates for car purchases are lower, high risk personal loans are still very expensive and you'll pay significantly more money for your borrowing than a lower risk applicant. If you really need the money then you don't have much choice, but if you can postpone your purchases and sort out your finances first you'll find you pay a lot less money for any loans in the long term. helps you find the best loans companies for your specific needs, and gives you background information on the various types of loans available in our loans articles, more loans articles and still more loans articles.

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