An adverse credit secured loan is a specially designed loan for people who have experienced credit problems in the past. There is some protection built in for the lender with a slightly higher interest rate but it is still possible to shop around for the best possible deal within this category of loan. Let's face it, the lender is protected by the security you put up to cover the loan amount.

On the downside, you risk the property that is secured to cover the loan. It is therefore essential that you carefully consider your own risk in taking out a secured loan, particularly if you have had a poor credit history. Taking out a secured loan for the purpose of purchasing non essential items is not recommended.

An ideal use of an adverse credit secured loan is for debt consolidation. People can get themselves into a hole with credit card and other consumer debt and often don't know how to turn things around. If you are struggling to survive every month due to high credit card and other consumer credit payments and have enough equity in your home or other property to cover your current debt, debt consolidation can provide an immediate solution to your problem. The interest rate will be lower as will your monthly payment. Furthermore, you will benefit by only having to make one payment every month instead of many. You will also be debt free at the end of the term of the loan as long as you don't use credit again.

Another good use of an adverse credit secured loan is to improve your property. If repairs or renovations will increase the value of your property and make it more popular to buyers, it can be worth your while taking out a loan to achieve this. However, you need to be sure not to overcapitalise your property so be sure to get good advice before deciding to proceed with your adverse credit secured loan.

Unlike debt consolidation, if you borrow for home improvements you will not improve your cash flow, you will reduce it. So it is important to make sure you have done your sums and are sure you can afford the extra payments. You may find that the money you invest in home improvements quickly improves your home's valuation. With a higher valuation you may be able to refinance your home and pay out your home improvement loan. It is therefore a good idea to look for a loan that doesn't penalise you for paying the loan off early.

An adverse credit secured loan can help you out of difficulty or cause you more trouble than its worth. It really depends on your ability to repay the loan and your reason for applying for it. As with any form of borrowing, the onus is on you to read the terms and conditions of the loan you are considering very carefully. You can get a good idea of the products on the market by doing an online search. Specialist loan websites can save you a lot of time and trouble researching and comparing loans and even allow you to apply online. The internet has made borrowing easier than ever before, however wise borrowing, as always, is up to you.