It’s All About Bad Credit Secured Loan

In the past, bad credit history would mean no loans for you.  It was believed if you have a bad history, it meant you were to much risk and chances are you will not pay back their money. However, there has been a rise in modern types of loans which allows people with bad credit to take a loan. These include unsecured loans for bad credit and bad credit secured loans.

What is bad credit?

Almost everyone has a credit history, knowingly or unknowingly logged in to the Credit Reference Agency. It is a record of the money you have borrowed in the last 5 or 6 years. it shows if you have insurance or any other contracts, shows your address and details of anyone you share finances. It also includes how well you have spread your debts and how you pay them. If you are late to pay of default to pay it is recorded here too hence your score reduces This leads to bad credit.

How does bad credit affect me?

It lowers your chances of getting loans. Banks and any other lender will not give you some type of loans because of your bad credit history.

What is bad credit secured loan and can I get it?

Bad credit secured loan is a loan given to a person with bad credit history. However, the borrower must have property or an asset that acts as a collateral in case he/she defaults payment it will be seized by the lender.

How do I find the best deal?

Do your research. Check out the lenders with favourable rates. Lenders view bad credit differently. Some will charge more interest because of some things in your credit history other will disregard those same things. Do not rush into the first deal you come across. Check here.

What are the pros and cons of secured bad credit loans?


  1. Repairs your credit rating. Taking a secured loan can be helpfully especially if you are already paying high rates on other loans. It might help you get out of debt.
  2. Cheaper. Bad credit secured loans are more affordable than unsecured loans for bad credit which has very high-interest rates. It is based on trust with no collateral hence more risk. For this reason, it is better to take a bad credit secured loan.
  3. Longer loan terms. Secured loans can have terms of up to 30 years. This favours the borrower as you can pay very small amounts per month or as the payment agreement dictates.
  4. Easy to obtain. Bad credit secured loans are easier to obtain than unsecured loans for bad credit which the lender has to look keenly on the history to study the borrowing and payment pattern. Since it is less risky, lenders will focus on the collateral worth.


  1. Limited amount. Like in all secured loans, the amount to be given is limited by the collateral. Lenders cannot give a loan that is more than the worth of the asset.

In conclusion, do not shy away from loans if you have bad credit and you need the money. However, if you can afford a bad credit secured loan, the better for you. Go for it. Get more information: