Bad Credit Loans – A Guide To Loans For People With Bad Credit

Most people believe that in today’s economic climate it is not possible to arrange bad credit loans however this is not the case. In fact as a result of the credit crunch there has been an introduction of a few new loan types that have come about so that people with bad credit can still arrange finance. The point of this article is to give you an insight into what options are open to you, so that you choose the best one for your circumstances.

Secured Loans

Secured loans are loans that require some form of collateral to be pledged to the lender, usually in the form a second charge on your home. Because the lender has the added security of knowing that no matter what happens they will get their money back they are more inclined to lend you the money even if your credit history is not as good as it should be. This type of loan is also generally available for larger sums of money than any other type of bad credit loan, and usually at better interest rates. You can borrow amounts from £5,000 up to £75,000 so long as you have the income to repay it and enough equity in your home. This type of loan also offers longer repayment periods offering terms of up to 25 years.

Guarantor Loans

A guarantor loan is a relatively new type of loan that has significantly increased its market share since the credit crunch took hold of the UK finance industry. The lenders do not even require the applicant to undergo a credit search as part of the underwriting criteria, which means that unless you are in an IVA or registered as bankrupt you can still arrange a loan, no matter how bad your credit record. This type of loan requires that you have a guarantor (co-signee) that guarantees the lenders repayments if you do not keep up with them. The guarantor will need to be a homeowner with a good credit and earning at least £800 per month. You can borrow loan amounts from £500 to £5,000 although some lenders will only allow you to lend up to £3,000 at first, they will however let you top up the loan after you have maintained regular payments for 6 months. Depending on the loan amount that you require, the repayments can be spread over terms between 12 and 60 months. The interest rates charged for this type of loan are considerably higher than those charged for a secured loan.

Logbook Loans

A logbook loan or V5 loans as they are sometimes known are a type of secured loan, however rather than the loan being secured on your home they are secured on your car logbook. They can also be arranged without a credit check and are available for loan amounts up to £50,000 so long as your car is valuable enough. So no matter what your credit history if you can afford to repay the loan, and your car is free of finance you should have no problem arranging this type of loan. Even though the lender will hold your car logbook until you repay the loan in full, making it a pretty safe bet for the lender the rates they charge for this type of loan are still quite high.

The Benefits of a Used Auto Loans Calculator

The most important step in the process of getting car finance is knowing what your repayments will be. Lenders use a complicated process of working out a persons loan repayments and, unless you are in the industry, you will generally not know how to calculate this yourself. One highly effective and readily accessible tool that you can use to help you work out your repayments on a second hand vehicle is a used auto loans calculator.

You can find a used auto loans calculator on many websites very easily. Most lenders today make these tools available to their customers. They are an excellent way for borrowers to determine how much they can afford to borrow as they allow you to calculate your exact repayments on your car finance. Since a car loan will be a major financial commitment that you will undertake for a number of years, you will need to ensure that it is affordable. A used auto loans calculator will enable you to work out how your car loan repayments will fit into your budget by giving you the exact figures you require.

A used auto loans calculator is beneficial in providing a great deal of information about your car finance. You can use these tools to work out your scheduled repayments, calculate the amount of interest you will be repaying on your loan and assess the best loan term options to suit you. A used car loans calculator can also allow you to see how making more frequent repayments or altering the term of your finance agreement will affect your repayment amount.

Another great way a used auto loans calculator will help you is that it will allow you to see how a down payment on your car loan will help. While down payments these days are not a necessary borrowing requirement, many people may underestimate how much they can assist in reducing you repayments and by using a used auto loans calculator you will be able to assess whether it is worth scraping together a down payment.

When it comes to applying for car finance you should always assess the amount that you can afford to borrow. You certainly don’t want to risk your loan application being rejected because you haven’t given enough consideration to your budget. A used auto loans calculator allows you to obtain the information you need without the hassle of having to approach individual lenders.

There is some standard information that you will be required to enter into a used auto loans calculator in order for it to work out your repayments. You will need to provide the amount that you will be borrowing, the interest rate applied to the loan, the term of the loan and the repayment frequency. You can change any of the amounts that you enter at any time in order to see how slight differences in your loan can change your repayment amount.

When you are getting car finance then you should certainly check out any used auto loans calculator that can be found online. These are free tools that are highly beneficial to anyone obtaining a car loan.

Two Popular Ways Of Real Estate Financing

Who does not want to have their own place, their own home? Who wouldn’t like to raise their children and spend their old age in the very same house with the memories?

Owning a house and building a home, is the dream of every man. However, not every man’s dream is fulfilled. Especially, since the global economic recession, people are finding difficulty in maintaining their lifestyle standard let alone raising it. Many people cannot even imagine of buying a home at this time. However, it is not completely absurd for people to own homes now, with the help of these two widely opted ways of real estate financing.

Government Loan

This is one of the most common ways for real estate financing. People mostly go for the Federal Housing Administration loan. However, one has to understand here that this is basically not a loan. You may say it is kind of an assurance that the government gives you based on whether mortgage lenders think you are trustworthy, and that you will pay them back. There are many benefits of this type of loan. Like, for instance, people who opt for this loan have to pay a down payment that can be as low as 3% or none at all! Also, you do not have to adhere to any strict criteria with sparkling credit history. The criteria for this loan is quite flexible and you will just have to present recent utility bills, that’s it!

However, people often delay their installments and repayment in such loans, and this should not be the case!

Bank Loan

A Bank loan is the second most opted way for real estate financing. Unlike the government loan, the bank loan is based on strict rules and regulations. There is a certain criterion for the applicants of the bank loan to be eligible for the loan. You should have a credit score that may be like that of a Good Samaritan. If there are any red flags in your credit report, the bank may increase the interest rate on your loan or may even drop your application. After the recession, getting a bank loan has gone from difficult to impossible for many people. The process has lengthened and gotten more difficult.