Unsecured and secured loan lenders advertise their loan products with respect to their typical APR. APR is the interest rate offered to 66% or more of their customers. The interest rate offered to you will depend of an assessment of your personal history of borrowing, and will be a reflection of your expected ability to repay the loan.
If your credit rating is low, your approval rating on an unsecured loan will also be low, as approval ratings are closely tied to the typical APR on unsecured loans. This is because the lender has no recourse to recover their money in the event that you fail to complete on your repayments on an unsecured loan; whereas with a secured loan the lender can force the sale of your home in order to settle the debt. As a result, if your credit rating is less than perfect, your chances of approval will generally be higher with a secured loan.
With a poor credit rating, your chances of approval may be quite low, so increase your chances of approval by applying for a secured loan. Totally Money will find you the lowest secured loan rates that you qualify for, and put you in contact with an independent secured loan expert for free, no-obligation advice on your options. Increase your chances of approval by applying for a secured loan.