How you can get 12 month loans for bad credit

Bad credit can affect you in more ways than one. First of all, it becomes impossible to get any kind of loans or credit from mainstream bankers and lenders. Then again even landlords and prospective employers check your credit score before either renting out their house to you or giving you a job. This is the reason that you need to be careful not to allow your credit score to get damaged. However, sometimes bad credit can be due to no fault of your own. Sudden layoffs and salary cuts are quite common and if you suddenly lose your job or face a salary cut, then your monthly income and expenditure graph can go quite awry. Now if you have bad credit and are faced with a financial emergency what can you do? The answer is easy – approach a good loan broker 

 

How loan brokers can help you if you have bad credit
 

All loan brokers are associated with a number of specialist lenders who do not take only your credit score and the factor for consideration while approving your loan. These specialist lenders are only interested in your current ability to repay the loan which is why they readily provide 12 month loans for bad credit to people who have less than perfect credit score. Of course, they are taking a higher risk hence they charge a higher rate of interest, but if you apply for the loan through loan brokers then there are more chances of getting the loan at a reasonable rate of interest. This way you can be sure that you are not required to pay an exorbitant amount in the form of interest.
 

What are 12-month loans?
 

As the name suggests these loans have a tenure of 12 months. You need to repay the loan in monthly instalments and the amount of the instalments will depend on the amount of loan you have taken and the interest rate. It is easier to repay the 12 month loans especially if the amount of loan you have taken is considerable. This is because some short term loans require you to repay the loan in a single lump sum of money, but with the 12 month loans, you have an entire year to repay the loan.
 

What to do if you have no guarantor?
 

Most of the lenders are ready to provide you with a loan if you have bad credit if you are able to provide a guarantor who has a good credit score and sizeable income. In this case, the rate of interest on the loan is also less. Essentially the guarantor signs an agreement saying that if you are unable to repay the loan then he or she will. This reduces the risk of the lender and due to this they also charge a lower rate of interest even if you have bad credit. However, you may not be lucky enough to have someone to vouch for you or it may be the case that you do not want to discuss your financial matters with anyone else. In this situation, you can approach a loan broker for loans for bad credit no guarantor. They will help you get the loan from one of the specialist lenders that they are associated with.

The best uses of short term loans for unemployed

Unemployment is increasing in the UK in spite of the sincere efforts of the government to make things better. Sudden layoffs and salary cuts are quite common and the economy of not just the country, but the entire world is in shambles. This is the reason that there are a lot of unemployed people in the UK. These unemployed people may have some source of income like benefits or a pension, but in a case of some financial emergencies they may need a financial helping hand and this helping hand is available with loan brokers in the form of short term loans for unemployed.

What are short term loans used for?

There is no particular definition of short term loans, but loans with a tenure of a few days to 3 years can be considered to be short term loans. These loans are usually used in case of financial emergencies like sudden home repairs, car repairs or medical emergencies which are not insured. At the same time, the unemployed people in the country have also despaired of the current economic scenario and are looking for alternative means of earning like self-employment and small-scale businesses. A short term loan can be used for funding these ventures.

 Things to keep in mind

Bear in mind that many lenders advertise loans for unemployed, but some of them are loan sharks out to fleece the unwary borrower. This is the reason that you really need to be careful while choosing a lender. The best way to protect yourself from unscrupulous elements is to approach a good loan broker for your loan. These loan brokers have associations with many lenders who are properly vetted for their method of operation. Only those lenders who adhere to the guidelines and regulations of the FCA are taken into consideration by the loan brokers. These loan brokers themselves follow the guidelines and regulations of the FCA to the letter. This is the reason that with loan brokers you can be assured to be dealing with legitimate and licensed lenders.

The other thing to bear in mind is that although with loan brokers you will be able to get short term loans bad credit no guarantor, these loans are special loans. The specialist lenders who provide such loans are taking a higher risk and therefore they charge a higher rate of interest. Of course, all kinds of debt should be taken seriously, but you need to be extra careful with these special loans because of their high rate of interest.

Why deal with loan brokers

The best part about dealing with loan brokers is that there are lesser chances of you taking a loan that you cannot afford. This is because the loan brokers have in their employ financial advisers who offer free advice and analyse your financial situation to help you decide the amount and tenure of the loan. This ensures that you do not end up taking a large amount as the loan which you cannot repay comfortably. If this happens then you can end up in financial trouble with serious damage to your already damaged credit score.

What you need to know about no guarantor loans

Usually traditional banks and lenders ask a loan applicant to provide a guarantor for the loan. This is especially so if the applicant has bad credit, he or she has to provide someone with good credit and a good stable income to guarantee the loan. In essence the guarantor agrees to pay the loan if the original borrower is unable to do so. This greatly reduces the risk of the lender and hence they are ready to give the loan. Even some of the modern specialist lenders ask for a guarantor if the applicant has a bad credit rating. However, if you apply for loans through loan brokers then it is possible to get no guarantor loans. This means that you can get a loan without a guarantor even if you have bad credit.
 

Why opt for a loan broker
 

Loan brokers usually protect you from loan sharks and other unscrupulous elements who are out there to fleece you. This is because they carefully vet the lenders with whom they form an association. They check whether the lenders follow the guidelines of the Financial Control Authority and are licensed to operate in the UK. AT the same time, they also ensure that the lenders do not charge a very high rate of interest, so that you can get affordable loans from them.

 

 

 It is also more likely for your loan to get approved if you approach a loan broker rather than approaching a lender directly. It is also possible to get special loans like loans for bad credit, loans for unemployed people on benefits and others. At the same time, the regular loans like personal loans, payday loans etc. are also available with them.

The best part about applying for a loan through a loan broker is that the entire process of application and approval is online and you do not have to leave the comfort of your home or office. There is no need for a face to face meeting with any representative of the lender as is the case with traditional lenders. Also the paper work is minimal and the process of approval is very fast. In fact, you can get approval for the loan in as less as half an hour, where the same procedure with a traditional lender might take days or even weeks. At the same time, the disbursal of the loan is also conducted within 10 minutes of the approval and all that from within the comfort of your home or office.

Can you get loans without credit check in the UK?

The answer to this question is no, because according to the guidelines of the FCA it is mandatory for a lender to conduct a credit check of the applicant before approving a loan. However, when lenders and loan brokers advertise no credit check loans no guarantor, what they actually mean is that the lenders in questions go soft on the credit check. At the same time, they take factors other than an applicant’s credit score into consideration when they approve a loan. When lenders provide such special loans they usually charge a higher rate of interest, but if you apply for the loan through a loan broker then it is possible to get loans at an affordable and reasonable rate of interest.