London (PRWEB) October 8, 2010
Bad Credit Loans provider http://www.loansbadcredit.org.uk expand product availability for consumers struggling to get credit or affordable short-terms loans.
Bad credit loans are loans made to people who have a questionable credit history, low credit score, or other credit problems that make it difficult for them to get a traditional bank loan. Bad credit lenders are much more lenient, and their whole business model is based on offering quick, hassle-free loans to virtually anyone who fills out an application.
Maybe consumers, for instance, need fast cash to help them get bills paid on time and avoid late charges. They often have unexpected expenses they haven't planned for and budgeted, or they just need a little extra money to get them through a temporary period of financial strain. Most people in that kind of situation reach for a credit card, especially if they have been turned down for a conventional loan due to bad credit. But credit counselors and financial advisors always warn that credit card borrowing is one of the worst ways to take out a loan because it is so expensive.
Of course putting the extra charges on plastic is easy to do, and credit card companies love it when customers pile on the debt. But with exorbitantly high interest rates, credit cards debt is potentially dangerous. If a customer fails to pay off the entire balance within a month then they typically face steep penalties and fees - plus an increase in their basic interest rate. That can make it nearly impossible to pay off a cash advance or large purchase, and millions of people are now struggling just to make their minimum monthly credit card payments. But even if a cardholder manages to pay the minimum balance each month their debt doesn't shrink. All they are doing is paying interest debt and that frequently creates a vicious cycle of more borrowing, more debt, less savings, and a higher chance of falling into bankruptcy.
For those reasons many people are turning to bad credit loans as an alternative source of funds. Loans for bad credit are not only easier to qualify for than traditional bank loans, but also offer a cheaper rate over Credit Cards.