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Secured loans 'ideal for those with a poor credit history'
Consumers in the UK with poor credit histories could benefit from taking out a secured personal loan, according to a leading financial website.
Compareandsave.com has outlined that rates on unsecured loans are often high for those with a poor history, so secured products may provide a handy alternative.
The website added that while providing a form of security to a lender may seem unappealing to many borrowers, there are benefits to doing so.
"It should be remembered that the interest rates on secured loans tend to be lower than on unsecured loans," it explained.
However, those who struggle to make repayments have been warned they could find themselves in trouble if they fail to pay it back.
According to figures from Defaqto, the average rate on an unsecured personal loan has risen over four per cent in the past three years to reach 12.9 per cent, despite the bank base rate being at 0.5 per cent.