If you have a history of bad credit, finding an unsecured personal loan can be difficult. Often sub-prime candidates are unable to find an unsecured personal loan on suitable loan terms, as being a high risk candidate can push the total cost of an unsecured loan beyond budget, making these loans unaffordable borrowing options for bad credit applicants. Bad credit applicants may also find that applying for unsecured loans with various different lenders can further negatively impact their credit rating. Each time an application is made, the lender will check the applicant?s credit report, which leaves an imprint showing that an application for credit has been made. As your credit record shows more and more searches, the likelihood of successfully obtaining a loan becomes less and less, often leading to a spiral of rejection for the bad credit applicant.

A better alternative for bad credit applicants than an unsecured personal loan may be to consider a secured personal loan. A secured personal loan is the same as a regular secured loan; that is, a loan that is secured against a valuable personal asset, usually your home.

Secured personal loans are well suited for bad credit applicants, as your home provides a guarantee to the lender that they can recover their funding; in the event that you default on the loan, they have the power to force the sale of your house in order to settle the debt.

As a result, your bad credit history is not so closely taken into consideration when your suitability for a secured personal loan is being assessed. This makes bad credit applicants more likely to be successful in securing affordable rates and flexible loan terms than on unsecured loan options, where a history of bad credit can result in the total loan cost being highly unaffordable.

Secured personal loans are also a good option for bad credit applicants who are seeking a consolidation loan. Having large amounts of unsecured debts can make your finances difficult to manage; unsecured borrowing such as credit cards, overdrafts and store cards can also carry very high interest rates. By rolling these debts into one large loan that is secured against your home, you may be able you to qualify for more attractive interest rates and flexible loan terms; you may also find that your monthly repayments are significantly reduced, allowing you to regain control of your finances.

The best advice for anyone seeking credit is to shop around and receive at least three quotes that are tailored to your personal circumstances. In particular, applicants with bad credit should utilise an independent financial comparison website, such as Totally Money, Money Supermarket or Beat That Quote, to help compare the entire bad credit secured personal loan market. These sites are full of expert advice, tips and guides to help you get your finances sorted; they will show you the best secured personal loan rates available for bad credit applicants, and provide free, no-obligation advice catered to your bad credit circumstances.Totally Money is an independent tool for those trying to find a loan that is right for them. Totally Money is able to give you all the information you need regarding bad credit secured personal loans