It is difficult to get the loan with bad credit history. The lenders will offers high risk loan for the people who have bad credit. Here the lender has to bare the risk, because the barrower may default. The interest rates are also high due to risk.
- Secured high risk loan: A open savings account needs to be opened by borrower to get a high risk loan. Sometimes the amount of loan will depend upon the percentage of amount deposited. In case, if the borrower fails to pay the monthly payment by the due date, the lender is authorized to recover that amount from the barrower’s savings account. Sometimes the lenders will charge the interest rate and processing fees for defaulters.
- Unsecured high risk loans: This type of high risk loan do not requires the savings account. But you have to pay more interest for smaller amount of loan with stricter repayment conditions. Apart from those, borrower needs to bare the high application and processing charges.
- Guaranteed high risk personal loan: Guaranteed personal loans are payday loans. These types of loans are given in small amounts with high interest rates. The requirements for this loan are proof of employment and age above 18 years. High risk personal loans are life savers The loans can be received without offering security in emergency conditions and fulfills the financial obligations.
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