Bad credit loans can prove an easy way of accessing money quickly. While these products are designed for those who have had money management problems in the past, if you're hoping to access them by borrowing against your personal assets there are several things you ought to consider.
Generally speaking, you will find an online personal asset lender will accept a wide range of personal assets as security for a loan, so if you have luxury watches, fine art or prestige cars, borrowing against these may prove an ideal method of accessing credit.
Many of those looking to obtain online loans can also borrow against their items of jewellery, and it may even be possible to get credit through more unusual items like cases of fine wine and musical instruments. Regardless of what you are hoping to borrow against, make sure you check which valuables a loan provider will accept before taking them in for valuation.
You should also take into consideration the amount of money you will be able to borrow. This will be determined by how much an expert valuer believes your valuables are worth. They will give you a quote on how much you can borrow against your valuables based on this sum.
The amount of money you get will also vary on the particular items you have taken in for valuation. You may be in a position to borrow as much as 70 per cent of a product's resale value.
Regardless of what you're hoping to achieve with your bad credit loan, it is worth bearing in mind that these short-term loans can be obtained in the space of just a few days. After your valuables have been valued, you will be given a quote about how much you can borrow. Provided that you accept this figure, the cash could be transferred into your bank account later the same day, so a bad credit loan can offer a great way to pay off bills or make a special purchase.
As is the case with all loans, you will need to think about how you intend to pay back your loan. Typically used as a short-term finance solution, the average repayment period is six months, although it is possible to get an extension on this. Alternatively, you may be in a position to complete your payments before the deadline. In this case, some companies are flexible and do not implement early repayment charges, so make sure you check what fees you may be subject to beforehand.
It is also worth remembering that you do not have had to undergo a credit check when applying for this type of bad credit finance. As long as you are able to provide proof of your identity - such as a driving licence and utility bills - and have personal assets which are worth a sufficient amount, you will be able to get a loan, no matter what cash flow difficulties you may have had in the past.
Even if you are currently experiencing money problems, borrowing against your valuables in order to get a bad credit loan will allow you to quickly get your hands on money when you need it.