Bad credit for a self employed person is like adding fuel to an
already ignited fire. Self employment itself is considered a bad
credit for the purposes of lending. Bad credit history, which
constitutes of County Court Judgements, Individual Voluntary
Arrangements, and bankruptcy, further puts the lenders in a
defensive mode. They often refuse loans to the self employed
people. Alternatively, the loans lent to the self employed
people are unreasonably termed, with the intention that
borrowers will themselves back out from the loan deal.
But, do borrowers really back out through refusals or
unreasonably termed loans? No! The need for funds pushes the
self employed people to accede to the terms of the loan.
However, there is bad credit loan for self employed instead,
which can be used by them to raise funds more advantageously.
Bad credit loans for self employed people are advanced by
lenders who are more considerate to the borrowers who have
underwent bad credit. These lenders are known as sub prime
lenders. Bad credit loans for self employed carry a moderate
risk and these sub prime lenders are ready to take up the risk.
What these lenders do is cover the risk involved in the self
employed loans by slightly differing the terms of the loan to
suit them. The difference in terms is what distinguishes bad
credit self employed loans from the other regular loans and
forms its principal feature.
You can hope to get a sizable amount through regular loans.
However, this is not true with bad credit loans for self
employed. Lenders will not lend more. Thereby, they cover
themselves against the risk originating. So, if you are thinking
of paying large expenses through the loan proceeds, then you
will be disappointed.
Online loan quote, offered by online loan providers is a fast
and convenient method of knowing how much does one qualify for
under the loan deal. Online loan quote is an offer by the loan
provider to the borrower. When borrower fills the self employed
loan quote on the Internet along with his personal details and
loan details, lender responds by forwarding the loan quote. The
loan quote has, besides the approximate amount of bad credit
loans for self employed, details regarding rate of interest,
interest options, repayment options, prepayment, etc. Through
loan quote, one can compare well between different loan
Another important feature of bad credit loans for self employed
is that the rate of interest that borrower has to pay is higher.
Since the degree of risk involved in the venture is higher,
borrower cannot escape from paying higher APR. However, they can
escape paying unreasonably high APRs through proper check. When
using online loan calculator, borrowers can very easily compare
between several loan providers operating in the UK.
Self employed may often qualify for a flexible loan. A flexible
loan is one where borrower does not have to make fixed monthly
repayments every time. They can overpay, underpay, or not pay at
all. This feature goes well with the finances of self employed.
The self employed do not get a fixed salary. They are running
their own operations and the profit is what constitutes their
income. The profit however is not stable. In some months they
may be able to bring home a sizable sum as profits. In another
months, they would have to go without anything. They would thus
not be able to sustain the fixed monthly payments. Through a
flexible repayment schedule, the self employed borrowers can
easily integrate loan payments to their unstable financial
Certain loan providers offer bad credit loans for self employed
with the feature of self-certification. Self-certification is a
feature wherein borrowers have to themselves certify their
income. This will come as a big advantage for the self employed
who are incapable of proving their income. In all aspects, bad
credit loans for self employed are the best that the self
employed people could hope to get.
Christian Phelps is a Masters in Accounting and Financial
Management from Lancaster University Management School . He has
been working with loan for self employed since his academics got
over. To find Self employed secured loan,unsecured self employed
loan visit http://www.loanforsel