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When
lenders advertise loans for poor credit,
it makes you wonder why they are doing so. After all poor credit means that a
person is not capable of handling a loan. However, this is not the case in the
current economic scenario. Nowadays the situation is such that you can end up with poor credit due to no fault
of your own. A sudden lay-off or salary cut can cause a carefully planned
budget to go completely awry. At the same time, even if the bad credit is due
to your fault, you most likely have learn from your mistake and therefore now
are perfectly able to handle a loan. All traditional and high street lenders
and banks refuse to give loans to people with bad credit. However, there are
many specialist lenders who are ready to provide loans to people with bad
credit.
What is the best way to approach
specialist lenders?
Of
course you can directly approach a lender, but often there are so many of them
offering so many different loan products that it can be confusing to choose the
right one. This is the reason that it is advisable to approach these lenders
through a good loan broker. In fact, some of the specialist lenders operate
only through loan brokers and you cannot approach them directly. What’s more,
although there are no guaranteed loans,
but your chances of loan approval are higher if you apply for the loan through
a loan broker. The approval of the loan in fact depends on the lender who will
match the financial and personal information provided by you with their
criteria and if it meets their criteria then they will approve the loan. The
loan brokers are usually associated with so many lenders that they are more
likely to find the loan product that matches your requirements. At the same
time, many of the specialist lenders are also ready to provide tailor made
loans to suit your requirements.
Why approach a loan broker?
The
main reason to approach a loan broker is that you will have access to a much
larger variety of loan products from different lenders than you are likely to
find yourself. Another reason is that lenders usually charge a higher rate of
interest when they take a higher risk like lending money to a person with bad
credit. However, if you apply for the loan through a loan broker it is more
likely that you will get the loan at a reasonable and affordable rate of
interest. At the same time, it is quite likely that you may be confused
regarding the amount of loan that you should take. All loan brokers employ loan
advisers who provide free advice to the loan applicants. They analyses your
financial situation along with your monthly income and expenditure graph and
then suggest the loan amount that you can repay comfortably. They may suggest
that you opt for installment loans
so that you can return the money within a period of 3 months, 6 months, and 12
months and so on. This makes the repayment easier and you can borrow a larger
sum of money because you have to return it in easy instalments.
