A secured loan is taken by offering collateral. In UK a home is generally used as collateral. The collateral ensures that the lender can recover the loan even if the borrower fails to pay off. So a secured loan comes with low interest rate, small repayment installment, long loan period and flexible terms. But the disadvantage is that you may lose the collateral if you fail to repay the loan.
An unsecured loan does not necessitate collateral. So the risk of losing your house in case of failure can be avoided. The absence of collateral also helps you to avoid some paperwork and property assessment cost. As a result it is processed faster and ensures a quick cash flow. But the seamy side is that it carries a comparatively high interest rate.
Both, secured and unsecured loan can be availed in spite of a poor credit record. CCJ's, bankruptcy, default, arrear and such other factors will not be a big problem for getting approval for these loans. However, a bad credit secured loan has better chance to get easy and quick approval despite bad credit. Above all, both these loans are available with online lenders. Online lenders are accessible via Internet. So you can enjoy a quick, easy and hassle free loan process if you apply through them.
For more information visit us at http://www.uk-loan-market.co.uk
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