Individual bank loan offered for poor credit score to customers is a poor credit score loan. Its repayment terms are not fixed and hence it will suit the person who takes the loan. In a way it is like taking the first step towards rewriting your record of credit score. If the person is above the age of 18 and a permanent resident of the country, and who is employed, then he is eligible to apply for this loan. They may need to use it to pay for some important individual event.
The Options Available If A Merging Loan Is Not Granted
If one is applying for a consolidation loan, it will not be granted if you have financial obligations to clear and also a bad record of credit score. The lenders do not think that you will be able to pay back. The only options available for you are Personal Insolvency Contract or Debts Contract. There are a few people who are ready to sanction a individual bank loan even with a bad record of credit score, but then you will be charged a high rate of interest. A few kinds of poor credit score loans are quick cash loans, car loans and home loans
Other Options Available For Repayments Of Debts
A debt agreement is another option available for those who cannot pay back the entire amount of debt, but have funds to repay a part of it. If you are not able to get a individual bank loan because of bad record of credit score, this is a good alternative. All the financial obligations are brought under one umbrella. All loans that are not secured like old utility bills, bank cards, loans, repossessed cars, will be pooled together. You are required to make one regular payment weekly, fortnightly or monthly. No legal action can be taken against you and there will be a freeze on the interest charges. Finally whatever you cannot repay is cancelled.
The Concerns Of Proposing A Debts Agreement
Since the person who intends a debt agreement, commits an act of bankruptcy which means that if the proposal is not accepted by the lenders, an application can be made to the court to declare the debtor bankrupt. The debtor's chances of obtaining any loans even loans for poor credit score will be affected since his name will be mentioned in the money score rating organisation's records and this will remain there for about seven years. Secured lenders can sell any asset that was offered as security in case of a default. The payments made towards unsecured lenders are only in proportion of their financial obligations. Debts Contract should be applied for, only if there is no chance of repayment of loans on time, otherwise consolidation is better.
Friday, March 22, 2013
The Meaning of A Credit Score Loans
7:02 AM
admin
