Any borrower with damaged credit history is eligible for poor credit loans. So despite late payments, payment defaults, arrears or county court judgments mentioned against such borrower’s name, he or she takes poor credit loans without many credit enquiries from lenders. The lenders just want to see that the borrower has sufficient capability to repay the loan in time. Most of the lenders prefer seeing borrower’s income and bank statements rather than poor credit history. So just take a sound and convincing repayment plan to the lender for approval of poor credit loans for your circumstances.

As per borrower’s circumstances and requirements, poor credit loans come in secured or unsecured options. Secured poor credit loans are best way to offset credit problem in taking the loan as lenders feel more secured on offering the loan against your property. Comparatively lower rate of interest is an advantage of secured poor credit loans for the borrower. Also, you can borrow greater amount depending on value of property that you offer as collateral. For financially weak borrowers, secured poor credit loans are best suited as they can be repaid in 5 to 25 years.

Unsecured poor credit loans do not require collateral. So these are best suited for tenants or non-homeowners and for homeowners not willing to risk property. Smaller amount ranging up to £25000 usually makes unsecured poor credit loans. The loan is of short term, ranging from 5 to 10 years of repaying duration.

Banks, financial companies and online lenders provide poor credit loans. Online lenders have comparatively lower interest rate on secured or unsecured poor credit loans. But make a comparison of lenders to find suitable offer as suits to your circumstances.