Adverse & Poor Credit History Loans

Many borrowers in the UK suffer from bad credit and in many cases it may not be the borrower's fault. Bad credit could be the result of a redundancy, divorce or business bankruptcy. Anything from late mortgage payments, country court judgements (CCJ) or missed book club payments can adversely affect a borrower's credit record. People who are self-employed, with no previous adverse credit, can also find themselves being turned-down for a loan because they have an irregular income. In fact, recent statistics show that one in five people would be turned-down by a normal, high-street lender.

However, there is no need to despair. Nowadays, there are specialist lenders that focus solely on providing finance for borrowers with a less than perfect credit history.

There are basically two types of personal loans available: secured and unsecured. A secured loans means that the loan is backed by a home, car or other assets, which the lender will have recourse to, if the loan is not re-paid. Unsecured loan means that the loan is not linked to any underlying security or asset and in the event of a default on the loan, the lender will have to go to the county court to try to recover the money.