Beware of Scams Claiming Guaranteed Loans

WARNING: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.

Your credit history is one of the most important factors that help you avail a loan. In the absence of a good history your credit score falls and you need to shed out more from your pocket for the loan. Besides, chances of rejection are never ruled out.

So there is more that goes around for assuring you guaranteed loans. Never fall prey to the scams that claim guaranteed loans or no credit check loans. FCA has strictly made it mandatory to conduct a credit check before lending cash in the UK.

Whether you need a loan for temporary financial emergency or due to stress owing to bad credit history it is important to abide by all the FCA guidelines. Credit check is the route for loan approval and availing a loan without following an FCA guideline is never recommended.

Three important factors to be considered in every loan agreement include the loan amount, rate of interest and duration. So rather than looking for a guaranteed loan you should look for all these factors in the loan deed. Besides use following tips:

Access your credit report

Pull out free credit report from one of the credit bureau and study your report. If there are any errors on the report, raise the dispute to the credit agency and get the error corrected. This would restore credit score in no time and you would become eligible for loan soon.

Know how much you could afford

After ascertaining correctness of your credit report, you should assess your credit situation to find out how much you should apply for. It is important to quickly study the net income in hand so that you know how much you could repay as the instalment.

Instalment loans

When living cash strapped, it is important to know all the expenses before hand and going for fixed interest rate is one way of doing so. With instalment loans you know how much you need to spend every month.

Repayment plan

You need to have complete ease of repayment as with added convenience in repayment enables timely payment. With successfully repayment, your credit score would improve and increase the credit worth at the same time.

Contact a broker

A loan broker can help you avail an affordable loan with complete ease of repayment. Whether you seek a bad credit loan or a no history loan, he would offer financial assistance on the best available deals. With an FCA registered broker, you could expect a fair deal with a registered lender.

Brokers are professional loan advisors and can assure the best deals around you.

No guarantor Bad credit loans

In the absence of a good credit score, if you could present a high worth guarantor or co signor it would add weight to your loan application. However with bad credit history it is more likely to have no one to back your application. Herein you are required to apply for No guarantor loan and a broker can help you find a suitable deal.

All in all rather than looking for guaranteed loans you should examine all the points of a loan agreement before sealing a deal.

Why Do Lenders Give Loans For Poor Credit?

WARNING: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.

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.