No credit check unsecured loans for people with “bad credit”

An unsecured loan is a loan essentially secured on the promise.

To repay by the borrower, with no other asset pledged as collateral or security. If you are a person that already has a history of missed payments, court judgements and even bankruptcy, your word to repay is not likely to be worth very much. This is why these types of no credit check loans often have very high fees or interest rates.

People with bad credit have often been targeted by financial institutions as a group that can be profitable, but that has largely been in  the field of secured lending, usually on the family home.

An example of how people with bad credit can be charged is payday loans. These are typically a loan till your payday, where you are charged a £25 fee for every £100 you borrow, if you pay on time.

In the event of default the fees and charges added to this loan can be very high. If you are in a position where you own your home, but you are likely to default on a credit agreement, its worth while giving good consideration to the costs of having a poor or reduced credit rating, as being subprime is not cheap in the UK!