How to Control Your Debts with Poor Credit Secured Loans!

Michelle Tuvey Michelle Tuvey | Loan Underwriter

Are you among the many in the UK with a bad credit history? Do you find that your poor credit is interfering with your ability to obtain financing? If so, all is not lost. Poor credit secured loans can help you by providing the long-term financing you need while also helping you improve your credit history.

Secured Loan Expert can help you obtain one of these loans based on the equity in your home. What is equity? It is the real, tangible value you have built into your home by paying on your mortgage thus far. Calculating equity is fairly easy: just take the amount you still owe on your mortgage and subtract it from the retail value of your property. The resulting number is your equity.

image one

You can use that equity as security for a personal loan from a bank or building society. In so doing, you are putting up your home as collateral against the money you are borrowing. As long as you make your payments on time, you will be gradually repairing your credit even as you use the cash to fund whatever things are important to you.

Your Money, Your Choice

Banks are willing to make secured loans for people with bad credit because they have tangible property they can hold as security. As for the borrower, the cash raised from a secured loan can be used in many different ways. One of the most common is to use the money to make property renovations. This increases the value of a home and, as a result, also increases equity. Some other common uses for secured loan funding include:

  • consolidating high interest debts
  • paying for elective medical procedures
  • covering university expenses
  • starting a new business
  • paying for a wedding.

There is no other form of consumer financing that allows you to fund so many different things while also repairing your credit. That is one of the reasons we are so enthusiastic about poor credit secured loans here at Secured Loan Expert. We have seen first-hand how much good can come from obtaining a secured loan as a long-term funding and credit repair option.

Obtaining Your Loan

If you plan to use a secured loan to improve your credit, it is important that you go about it the right way. The truth is that not every secured loan offer represents a good deal for you. Just as things such as insurance and bank accounts differ, so do secured loans. You need a loan that is affordable and easy to get if you want the maximum credit repairing effect.

Getting the best deal means comparing multiple lenders and loan products. Your comparison should include the following: annual percentage rate (APR), representative APR, loan-to-value (LTV) ratio, and loan terms. Each of these four factors plays an important role in determining how affordable a secured loan is.

If you are in any way worried about comparing loans just give our team of secured loan experts a call. Their expert advice is free and there’s no obligation on you. Our experts will use the technology at their fingertips to find and compare the best loan offers from the whole of the market and give their advice on the best options to suit your individual needs. If you want to proceed with any of the offers they find they will make an optimised application on your behalf ensuring that you have the best chance of gaining a fast, cost effective approval. Our team will also advice you fully of all charges connected with the loan before you decide to go ahead and apply.

With a good interest rate, low associated costs, and the right terms, your poor credit secured loan becomes a powerful tool for repairing an impaired credit history. However, the opposite is also true. If you get yourself into a deal you cannot afford, you could find yourself in a worse position than when you started. Not only will it be more difficult to repair your credit history, you could actually lose your home in the process.

Never forget that a poor credit secured loan uses your home as collateral. Your lender can repossess your home if you fail to make payments on time. So before you obtain a loan, make sure the issues that caused your bad credit have been resolved. You do not want to make things worse for yourself by taking on new credit you cannot afford.

It is good to know that poor credit secured loans are available to homeowners with equity. If you are one of those homeowners, consider a secured loan as a tool to repair your bad credit. You will enjoy the added bonus of being able to raise tens of thousands of pounds to finance whatever it is you do not have the cash for right now.

Instantly compare 950+ of the UK's best secured loans

Rates from as low as 3.75%