1. What is Credit score?
2. What is Bad Credit?
3. Can a person in Bad Credit avail more Loans?
4. Do banks and financial institutions issue Bad Credit Loans?
5. Who gives Bad Credit Loans?
6. What are the advantages of getting a Bad Credit loan from sub prime leaders?
7. What are the disadvantages of taking a Loan from sub prime lenders?
8. What are the types of Bad Credit Loans?
9. What is a Mortgage Loan?
10. What is an Asset?
11. What is a Personal Loan?
12. Which is better-Personal Loan or Mortgage? Why?
13. What should you do before taking a Mortgage Loan?
14. How should you compare two loan quotations?

The Credit score is an indicator of the Credit worthiness of a person. If the Credit score is high, it implies the person is highly worthy of Credit and vice versa. Acts like prompt payment, taking few Loans, etc. add to Credit score and acts like taking too many Loans, defaulting on your loan and so on ruin your Credit score.

If a person is in Bad Credit, it means that person has defaulted in the repayment of one or more of his Loans.

Yes, A person in Bad Credit can avail ‘Bad Credit Loans’.

No. Banks and financial institutions do not give Loans to people in Bad Credit.

Only sub prime Bad Credit leaders issue Loans to people in Bad Credit.

The only advantage of sub prime lenders is that no one else will give you a loan. So, they are the only option left.

The main disadvantage is the exorbitant rate of interest that these lenders charge.

Bad Credit Loans are of two types

1. Personal Loans of unsecured Loans given on personal worth of the borrower and
2. Mortgage or secured Loans that are given on the security of some asset or property.

A Mortgage Loan is a secured loan in which some asset is given as security for the loan. If the borrower defaults on the loan, the lender can sell the asset and realize the loan.

Anything that has value is known as an asset. The assets that are normally given for mortgage are property, jewels, share certificates, etc.

A Personal Loan is an unsecured loan (i. e. no asset is given as a security for the loan) that is given by the lender based on the personal worth of the borrower.

A Mortgage Loan is much better than a personal because:

• A mortgage reduces risk of the leader and this will in turn reduce your interest rate.
• All lenders, including banks and financial institutions will give you Mortgage Loans but only sub prime Bad Credit lenders will give you Personal Loans. The more options that are available to you, it is better as you can choose the one best suited to your financial situation.

You can avail a Mortgage Loan from any lender. You do not have to restrict yourself only to sub prime lenders. Thus, you can shop around and get quotes from various leaders before choosing the right one suited for you.

You should always compare two loan quotations in absolute money terms. Take into all other factors too like term of the loan, processing charges, etc. while comparing the Loans.

For instance, Loan A and Loan B may both have interest rate of 7 % but he while the term of Loan A is 8 years, the term of Loan B may be 10 years. So Loan A is the better option as in absolute money terms, you will be paying more money in Option B.