How to Get Secured everyday Loans With Bad Credit

everyday loans
everyday loans

In today’s economy most of us have had a financial hick up at one point in time. Did you know that 60% of all the daily personal loan applications in the UK are being declined?


So what to do when you’re in this situation? There are a view options that you could consider regarding everyday loans:


If you are not a homeowner you could consider a guarantor loan. For these types of loans you will pay a higher interest rate and you need to provide a guarantor who is a home owner and who has a good credit rating.

If you are genuinely struggling every month than a debt management solution might be the way to go. You can lower your monthly payments on unsecured loans by hundreds of pounds per month. This will affect your ability to take out a loan however.

If you are a homeowner however and you have an adverse credit history the best solution might be a secured loan. These type of loans use a second and sometimes a third charge on your property as security on your house. You don’t need equity in your house to qualify for a secured loan.
So how do you know if you qualify for a secured loan? Below you will find the conditions that you will need to meet.
You must be between 21 and 60 years old. The loan needs to be completed by your 65th birthday.

You must be a homeowner and live in the property.

You must live in England, Wales or Northern Ireland. Scotland is unfortunately excluded.

You have to be employed for a minimum of 6 months and earn a minimum of A 1,000 net per month.

Your salary needs to be paid directly in your bank account by BAC’s.
There are also a few other criteria that you will need to consider:
It is possible to be in a debt management plan as long as you’ve maintained it for a minimum period of 12 months.

It is not a problem if you work in the armed forces

Self-employed is not a problem as long as you’ve been self-employed for at least 12 months and can provide either audited accounts or 6 months of current bank statement (personal and business)
Mortgage arrears don’t necessarily mean that you don’t qualify. As long as there are no arrears in the last 3 months and you are making the contractual payments it is not a problem to take out a secured loan.
What’s not accepted?:
If you are declared bankrupt or are in an IVA

If there is an existing secured loan for more than A 15,000.

If you are being paid in cash or by cheque.

If you are unemployed or retired.

If you do not reside at the address where the loan is to be secured.
Please be aware that if you fail to make your payments you are at risk of losing your property.

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