A Bad Credit secured loan is a secured loan that is made available to people that have some form of adverse credit. Adverse can also be termed, adverse, Poor Credit or Non status or sub prime. It usually means that the client has CCj's ( County Court Judgements) or defaults, or has missed payments on a Mortgage or secured loan ( Arrears ) or even arrears on some form of unsecured credit.
There are a variety of lenders that offer loans in various markets, prime, sub-prime, BTL ( Buy to let) etc, they tend to specialise in specific markets but may have offshoots that are rebranded for a particular market, such as sub-prime. The sub-prime market accounts for a sizable portion of the UK secured loans market and is the sector which is currently seeing considerable changes due to the so called credit crunch.
Different lenders differentiate what they term as sub-prime, and what they take into account when offering adverse secured loans. The majority take into account CCJ's, but some will ignore if under a certain amount or if over a certain age. Defaults are sometimes ignored all together. One of the main points that most lenders look at is the Mortgage history and secured loan history ( if there is one currently) and how those accounts have been conducted over a set period of time. This can have a major impact, if it is in arrears, on the clients ability to obtain a adverse secured loan. It can also effect the rate at which the loan is offered, due to the fact of the higher risk of repayment of the loan.
The fact that there are so many variables, outlines the need to deal with a good secured loan packaging company, who will have the criteria, for each of there lenders and will save the client a substantial amount of time and credit searches, which can effect their credit score, in searching for adverse secured loans
