If you made payment mistakes in the past then surely you are a risk for a lender. But that does not mean that all doors of lenders have been closed for you. Still there are plenty of lenders in the loan marketplace who are giving unsecured loan to poor credit people. Unsecured poor credit loan is source of easier loan for all those people who in their name have one or many credit faults like late payments, arrears, payment defaults and CCJs. You can put the loan amount to which ever purpose like home improvements, wedding, holiday tour, buying a car, debt consolidation etc.
Poor Credit Unsecured loan are source of risk free borrowings as lenders approve the loan without taking any security from the borrower. What is more, the loan gives you a chance to improve your credit score as you clear the loan installments in time. It can be said that while you complete variety of works through the easily available loan, at the same time you are repairing your credit score.
The loan amount under poor credit unsecured loan usually ranges up to £25000. But your income and overall ability to repay the loan determines how much you can borrow. The loan has to be returned back in shorter duration of 5 to 15 years depending on the borrowed amount.
A bit of disadvantage is poor credit unsecured loan carries higher rate of interest which in fact may go further higher as your credit score goes down. It is advisable to first try to improve credit score by paying off easy debts if any and then apply for the loan to get it at better rate. Also you should make sure that your credit report is error free and know your credit score before applying for the loan.
Ensure that you have made extensive comparison of lenders by taking their rate quotes so that you can select a suitable lender having a good deal for your circumstances. And ensure also to return the loan in timely manner for improving your credit score.
