Together Bad Credit Secured Loans

Possibly. There are lenders that will consider borrowers with poor credit records for a secured loan, providing they have property against which to secure the loan. In fact, it may be easier for homeowners with bad credit records to be accepted for a secured loan than an unsecured loan, as providing your property as security reduces the risk involved for the lender.

As with any loan secured against your property, you could stand to lose your home if you find yourself unable to repay the debt owed. In some situations, lenders may be able to force the sale of your home in order to raise the funds needed to clear the debt. This is why it is vital to ensure you can afford to repay your secured loan for its entire term.

Secured loan providers will often offer borrowers larger amounts of money than unsecured loan providers. Therefore, people often use secured loans to pay for things like extensions or home improvements. They are also used for debt consolidation or for making large purchases. However, interest and charges are payable and this means borrowers should consider whether they really need to take out a secured loan before taking the plunge.

It is worth researching and considering re-mortgaging as a means of accessing a larger amount of money when you are a homeowner. However, if your credit record has deteriorated since you initially took out your mortgage, you may struggle to access a remortgage deal with your current provider, or with a new provider as remortgage applicants have to meet the same criteria as initial mortgage applicants.