Most of the personal loan products offered by the lenders in UK are unsecured and therefore the credit history of the borrower is something the lenders can not afford to ignore. As a result, a borrower with an unimpressive credit record usually finds it hard to obtain a personal loan from prime lenders in UK.

The sub-prime lenders, however, have some personal loan products ready even for those with bad credit record. Though they like the borrower to offer something as collateral, they do not make it a precondition for obtaining a bad credit personal loan. Even unsecured personal loans are available with them. However, the terms and conditions of such loans are strict. One has to pay a higher rate of interest and the repayment term is usually made short by the lender.

The interest rates of secured bad credit personal loan are low and the repayment term is long. However, secured bad credit personal loan takes a little time for disbursal due to assessment of the collateral and the resultant paperwork.

A secured or unsecured bad credit personal loan can be put to various uses by the borrower. In fact, flexibility of use it the most significant feature of such a loan product. You can use it to meet your holiday expenses, consolidate your debts and improve your credit rating, pay your medical bills, finance the education of your child, buy a vehicle or renovate your house.

Any application for a bad credit personal loan should be preceded by a study of the interest rates offered by the best online lenders UK. This will help you choose the best deal for yourself.