Secured Loans Bad Credit
Why do bad credit ratings scare lenders?
When people apply for secured loans bad credit ratings can mean the application will be rejected. Although secured loans are more likely to be approved than unsecured loans, lenders will generally run screaming from anyone who looks like a bad risk – which means you may need to talk to a specialist lender.
For mainstream lenders, if customers apply for secured loans bad credit ratings are a big no-no: lenders don't like risk, and if your financial history is a horror story then you'll find that many big-name lenders won't consider your application. Lenders make their money from interest repayments, and if they're not confident you'll make the payments they may not want to lend you any money.
With secured loans bad credit ratings will often mean either very high interest rates – due to the additional risk to the lender – or a rejected application. That doesn't mean you can't get cash, though: it just means you may need to visit a specialist lender rather than one of the big-name Web sites. However, bad credit lenders will also check your ability to repay the debt, and while they may be more forgiving of past indiscretions they may still refuse your application if you're a very risky proposition.
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