What Is A Bad Credit?
Bad credit is the failure of paying your payments on time and your inability to take further payments for the new credit. This shows that you have not paid your past payments on time and therefore, you are no more eligible for the further payments. This is a common problem with every lender if they see your bad credit card, they will deny you for the payments. But this will also affect the interest rate. This is the credit report that is made by the credit bureaus for every person.
If you want to get a loan with the bad credit card, then it is almost near to impossible. But, recently many different companies have stepped forward and they are offering great deals to the customers even if they have a bad credit card.
If you are suffering from all these problems, then Stag-Parkway Loans have come up with the solutions. We will provide you with the loans even if your credit card rating is not good. But let’s have a look at all the types of bad credit loans that are currently available.
What Are The Types Of Bad Credit Loans?
There are two types of loans including secured and unsecured loans. These both types of loans don’t link to the ratings of the credit card. These types of loans usually consist of high-interest rates, but they have been specially designed to help people who have bad credit scores. Because such people don’t get money from any other person and they suffer different problems. Here are the different forms of bad credit loans.
- Guarantor Loans: these types of loans are given in the presence of a guarantor. It is a form of an unsecured loan and it requires a guarantor to co-sign the agreement with the borrower and lender. A lender is a person who takes the responsibility of paying off the whole payment if the borrower defaults it or he is not able to pay back. The guarantor must have a good credit score and he must be above 21 therefore, this is to ensure that the guarantor has the ability to pay the finances of the borrower if he misses any one of it.
- Secured Loans: such types of loans are mostly preferred for the people with the bad credit card. These loans are recommended to the people rather than the personal loans. These loans consist of giving the loan against something that can be a home, property, vehicle or any other thing that is owned by the borrower. These types of loans are especially suggested for most of the people with the worst credit rating as they offer very low-interest rates. Moreover, the lender doesn’t own your property or any other valuable till the time you repay the whole loan back. This is not the case with the Stag-Parkway Loans. We don’t own any of your things. You can use them as much as you can, they are absolutely yours.