Are you facing the worst consequences of your adverse credit score? Are you looking for an efficient source to get back on good credit? Before finding the answers to these questions, have you realised how much you are prepared? Your reply would be ‘no’.
It is a general problem among people with very bad credit scores. They always get disappointed after facing such a tricky problem rather than be prepared for any unwanted financial crisis. Fortunately, they now have ample opportunities to explore how to secure funds as well as improve their credit scores.
There is no need to look here and there to search for a solution. What about applying for extremely bad credit loans in the UK from a responsible direct lender? Yes, indeed, these may not be the standard loan options, but they are really effective in countering the sudden financial turmoil.
What are the realities of extremely bad credit loans?
The UK loan marketplace is expanding at a rapid pace. You can see plenty of loan options have come up, and new lenders are offering different financial ways. All these things have resulted in tough competition among the lenders and, of course, several advantages for the borrowers.
In fact, loan aspirants are in the stage where they can seek extremely bad credit loans from direct lenders. Such sorts of loans are really beneficial for them, as they get quick financial assistance. Moreover, lenders offer these loans without mandatory restrictions for borrowers with adverse credit.
Here are the realities that these loans hold their behind:
- Favourable Loan Terms
Loans for people with very bad credit are small loans where the borrowers receive funds according to their current financial circumstances. The loan amount may vary from one lender to another, but the borrowers definitely have the convenience of getting adequate funds. Importantly, they are free from the burden of submitting collateral.
Direct lenders do not require a home or car from the borrowers as collateral because they are assured with their income source regarding repayments on time. And of course, the guarantor is also not required, but the interest rates may jump higher.
- Past performance does not matter
A few years back, funding opportunities were available for a limited number of people or, particularly, for those who had maintained a good credit score. The present scenario is quite different from the previous condition. Now, the borrowers do not need to worry about their credit scores. The loan provider will approve their loan applications because it does not check aspirants’ credit backgrounds.
- Borrowers have to define their monthly income
For the purpose of availing very bad credit loans, the borrowers are required to fulfil all the eligibility criteria, especially the income source. When the lenders do not mind their bad credit scores, they actually want to know their employment status. Therefore, you should have a significant monthly earning so that the lender can be convinced to offer funds to you.
It gives another advantage to the borrowers, as they can secure funds at competitive interest rates. It is because they can make well-timed repayments of the loans from their monthly income.
- Loan rejections can happen
Many people think that the lender would not go through their credit details so that their applications would be approved despite any mistake. Still, the lender’s requirements are quite different.
Borrowers have the responsibility of mentioning only true details along with the online application form. Otherwise, the lender has the right to reject those applications in which wrong information is provided.
- Guarantor may be beneficial
Presenting a guarantor is always beneficial for the borrowers, as they are eligible to acquire the loans at low interest rates. However, not all people can find a guarantor because they have a poor credit record.
These loans have eased the conditions for them, allowing them to apply straightway for loans without a guarantor. However, they should know that the interest rates would be more expensive than in normal conditions.
- No need for a broker
It is a common assumption among people that assisting a broker brings an ideal outcome for them. It can be true, but not all the time.
Sometimes, the broker asks for heavy fees from the borrowers, which they cannot pay. As a result, the broker refuses to help them. It is suggested here that people should do this task on their own by doing comprehensive online research and comparing the terms and conditions of the different lenders.
- A direct lender accepts online loan applications
Borrowers have the major advantage of this guaranteed loan for very bad credit, as they can submit their loan applications online. Most lenders are now providing online facilities to people so that they can secure funds quite early and in a safe manner.
The online procedure can be availed without any errors, and it does not involve many papers to submit or fax. Furthermore, an instant fund transfer is also possible with the online application because the lender does not have to search many papers before giving the loan approval.
- Guaranteed approval on the loan
Unlike banks, direct lenders offer the benefit of guaranteed approval on loans for people with very bad credit. The bad credit score does not matter to them, but they really expect seriousness towards the lending process from their borrowers. It is your responsibility to follow all the steps sincerely because any kind of wrong information can cause them harm.
Direct lenders may be flexible in their lending approach, but they do not compromise with any wrong information. They are ready with guaranteed approval, but only if the funds are used for the right purposes.
For example, suppose you want to borrow a small amount to book a car. If you do not have any pending debt to clear now, lenders won’t mind giving you guaranteed car finance despite a low credit profile.
Conclusion
Online loan companies are now quite open to their approach. In fact, they have become far more efficient than brokers because everything about lenders can be examined online.
The loan seekers can easily compare their interest rates to choose the most appropriate credit provider in the UK. Therefore, these extremely bad credit loans are definitely the solution to their financial problems.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.