There is no doubt that borrowers with excellent or good credit ratings have great opportunities to obtain advantageous and lower cost loans. However, borrowers with bad credit are finding more than ever, that there are financing opportunities for them as well. The reason for this evolution in the bad credit market is a significant increase in the size of this population. Nearly one in four Brits are said to have some type of adverse credit history or rating.

As the size of this market has increased, so has the number of lenders looking to compete for credit business from it. Competition has created a greater variety of loan products for those with bad credit, made loans easier to obtain, and provided more reasonable rates and terms. Bad credit borrowers have much more bargaining power than the once did. Even borrowers that have experience County Court Judgments (CCJs) or bankruptcy can find lender programs and products designed specifically for their unique circumstances. Along with increased competition, the internet and the growth of independent loan brokers have also benefited bad credit consumers.

Independent brokers have caused loan providers to compete head-to-head for business from consumers. This has prompted many lenders to try to position themselves as a leading provider and a compassionate lender with borrowers that have bad credit. Although not quite as easy as it is for excellent credit borrowers, the loan process itself has become much more efficient for bad credit borrowers. Many online lenders offer some loan products that promise instant approval and quick funding for both good credit and bad credit borrowers.

Others offer loan specialists who will work with borrowers that face any circumstances to try to come up with the best rate, terms, and plans available. Secured loans, which are backed by a collateral property, also help bad credit borrowers get higher loan amounts and the most practical rates. Borrowers need to carefully explore their options. Some bad credit borrowers that are not used to having options, may be tempted to jump into the first loan product offered to them. However, consumers do need to be aware that there are some less upfront lenders in the market who attempt to prey on the desperate borrower looking for any type of financing. Along with high interest, some lenders package high up front costs, and other loan and insurance premiums into loans with little more than a footnote in a disclosure.

Borrowers need to be wise and carefully assess their opportunities.

Martin writes for ADM, who offer bad credit loans to people with low credit scores.