Global Loan Company
What is a bad credit loan?
This is a loan for people who have experienced financial difficulty in the past such as late or missed payments; County Court Judgements (CCJs) and Arrears etc. You will be deemed as having ‘bad credit’ and could find it difficult and expensive to get a loan. However, there are sympathetic lenders who will provide you with a loan even if you do have bad credit, hence the term ‘bad credit loan’.
What is a secured lender?
A secured lender is a loan provider who secures the loan against your assets such as your home or car. Interest rates on loans provided by secured lenders tend to be cheaper than those offered by unsecured lenders. This is because the secured lender can seize your assets should you fail to meet the repayment terms whereas the unsecured lender cannot.
What is an early redemption penalty?
An early redemption penalty is a financial penalty that you have to pay should you settle lending such as a loan or mortgage early. When looking for credit, it makes sense to check out the early redemption clause. That way you can see how much you could be liable for should you decide to pay off the borrowing before the end of the agreed term.
What is a credit record?
A credit record is basically a record of all the credit you have had in the last six years. It shows how much you have borrowed and whether you have missed any repayments etc. A credit record allows potential lenders to see your financial history so that they can decide whether to lend you money.The data on your file is complied by credit reference agencies such as Equifax and Experian. They use information from public records (e.g. electoral roll information, court judgments etc) and from lenders and financial institutions: e.g. credit accounts, credit applications).
What is a default?
A default is the term used to describe where you have failed to meet your contractual obligations. If you have missed a payment on a mail order account, for example, they may place a Notice of Default on to your credit record.This will reflect badly on your credit file in the future should you wish to apply for further borrowing.