Not too long ago, if someone had adverse credit it was very unlikely that they would be accepted for any kind of a loan. These days, having adverse credit no longer excludes UK homeowners from being able to receive a loan. If you have adverse credit, the problem now is avoiding being taken advantage of by a lender. The biggest challenge that most people find when their credit is less than perfect is being offered loans at outrageous interest rates. Let us take a look at how to avoid being taken advantage of by lenders offering unreasonable interest rates and find a secured loan adverse credit at a great interest rate.

With the current low interest rates and increased competition, lenders are a lot more flexible about offering adverse credit secured loans. Lending companies are more likely to approve a person with bad credit for a secured loan because they have the added security of collateral to guarantee the loan.

The most common form of collateral for an adverse credit secured loan is a home. It is therefore important that great care is taken in budgeting the repayment of the loan, as missed payments can result in foreclosure.

It is advisable to take your time and carefully shop around when looking for a potential lender. Secured loans for adverse credit have the widest range of available interest rates on the market, with rates ranging from 9% to as high as 23%. As an example on a £25,000 loan over 15 years, the difference between 9.5% vs. 11.5% would mean a savings of £5,579. Obviously finding the most competitive interest rate will save you a substantial amount of money.

How to find the Best Interest Rate for Adverse Credit

So what is the easiest way to find the lowest rate for a secured loan with adverse credit? The best advice is to use the services of a good loan comparison site. One advantage of using a good comparison service is the ability to instantly compare over 250 loan plans and options provided by the top lenders and high street banks. Having a comparison of quotes matching your specific requirements is key to finding the lowest interest rates available for your credit situation. The best online comparison sites also offer the advantage of no search fees, no obligation and most importantly no initial credit check.