Several lenders nowadays advertise giving out guaranteed loans. There are no guaranteed loans as such across the UK. Lenders go through a borrower’s credit profile before they sanction a loan for him. They are bound by legal and ethical obligations to do so. So in case you find that a lender advertises giving out a guaranteed loan, it is unlikely that he is being entirely truthful with the viewer.
Still, if a borrower has a low credit score, he should not worry about getting a loan. Numerous lenders will be willing to provide a loan for a borrower who has a bad credit score. Several loans will be available for him.
Lenders sometimes perform a soft search for a borrower with a bad credit score who needs money now UK. If he produces a proof of his ability to make repayments, in ways such as recurring monthly income or benefits received, they sanction a loan for him. This is even while a borrower has a bad credit score.
Short term loans are often easier to get for a borrower, in particular when the loan amount is small. The loan application is approved without difficulty for a large percentage of such borrowers. Lenders are not reluctant to approve short term loans such as payday loans because the margin of error in such cases is limited. People with a bad credit score can easily get such loans.
Since the number of people who have a bad credit score is numerous, lenders design some loans especially for such people. They recognize that people should have access to credit when they require it, irrespective of their credit score.
A borrower has more variety available before him than ever before
Since the number of people with a bad credit score looking out for loans is more, there is a certain degree of competition among lenders for giving out loans. In turn, they make different kinds of loans available as online borrow money UK and short term loans bad credit UK.
With a little bit of research, a borrower can come across at just the right kind loan that he is looking for, in terms of APRs, loan amount, and repayment terms. Lenders may even be willing to personalize the loan terms for a borrower.
How long should it take for a loan to be sanctioned?
A loan application seldom takes over a couple of minutes to fill up. There are cases wherein applications are approved instantaneously, and a borrower receives the loan amount in his account in merely 15 minutes.
Is a short term loan bad credit UK going to be more expensive than a conventional loan?
There are numerous cases wherein a bad credit score renders an effect over the rate at which a borrower is offered a loan. A lender is likely to go through your credit history and your job status before finalizing the rate at which he wants to give a loan. This will give him a fair idea about the borrower’s ability to pay back the loan.
One of the key parameters that a borrower should look for in a loan is that it is the best match for the unique circumstances surrounding him. So a borrower should ideally do some research and find such a loan, instead of going ahead with the first alternative on offer.
How is a lender different from a credit broker?
Are you looking out for a best-suited loan for your circumstances, or do you want to choose between the services of a lender or a credit broker? Services of a lender may be a better option to go ahead with if you have a good credit score. You can go ahead and contact a lender who offers the lowest APR loan UK for you.
Services of credit brokers become more important when borrowers are declined by lenders for getting a loan, or they have a bad credit rating. With their panel of lenders, credit brokers match a borrower with the lenders who will be willing to sanction a loan for him, given his unique circumstances and credit score. The panel of lenders will include lenders who match up with all customer profiles.
An important advantage that comes with availing the services of a credit broker is that it saves hassle for a borrower, and he does not have to scan lenders individually. Similarly, as the lenders conduct a soft search over the borrowers, it does not affect their credit score as well.