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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 APR?
APR is short for 'Annual Percentage Rate' and it is a legal requirement for lenders to display the APR when advertising interest rates.It shows the true cost of borrowed money on mortgages, loans and credit cards. How it works is that the APR calculation takes into account all the costs associated with the borrowing (such as the basic interest rate, any costs you have to pay and any initial fees).Because lenders calculate APR the same way, it means that you can make significant cost comparisons between products.

What is a credit check?
A credit check is a search carried out by a potential lender to assess your suitability for credit. They will check your credit record to see your current and previous financial history. They can then give you a credit score to see if the way that you manage your finances meets their criteria for lending.

What is an arrear?
An arrear is a legal term and is used to describe where you are behind in payments on a credit agreement. Someone will be “in arrears” from the date their first expected payment is missed.The term tends to be used when describing late payment of rent, mortgage, credit cards or personal loans as well as child support and taxes.