The main difference is that the loan provider will normally charge more interest to lend to someone that they may feel is ‘high risk' compared to someone that they may feel is ‘low risk'. Someone with a bad credit rating will be considered more risky to lend to than someone with a good credit rating.

But, not all loan providers have the same criteria for assessing risk, and they have differing interest rates and differing ways of adjusting their interest rates in line with their own risk calculations. That is why it is very rare for an individual to go to two loan providers and get the same price quote. That is why SecuredLoansComapred.com is so useful - it goes and checks hundreds of loan providers and puts you in touch with the best (and cheapest) for someone with your particular ‘risk' profile.