Risks Associated With a 12-Month Loan

786 Loans helps borrowers find long-term loans as well as short-term loans. You don’t have to have a perfect repayment history either – it’s our job to find the best long-term loans for bad credit applicants too.

In this article, we look at the pros and cons of long-term loans.

•    What are the advantages of a long-term loan?
•    You have much longer to repay

With payday loans, you have to repay it in full plus the interest within 30 days of taking the loan out. With short-term loans, you have, usually, between 2 and 12 months to repay the money you borrowed plus the interest on top. If you want to take out a sizeable amount of money but you’ve only got a short amount of time to pay it back, you might not be able to comfortably make the repayments on time and in full to your lender because there’s no enough spare cash in your household at the end of the month to meet the cost.

   
      With a 12 Month Loan, you have up to 12 months to make the repayment. Lenders typically offer you to borrow an amount of £100 to £1,000. Moreover, you do not have to provide any collateral as security and also, you do not have to arrange a guarantor.

Interest rates are normally higher

Short-term loans tend to have much higher interest rates than long-term loans. The higher the interest you pay on a loan, the more it costs you in total to pay it back in full. With 12 Month Loans, the interest rate you may be offered will be a fraction of what you would be offered with a short-term loan or a business loan. However, this is not always the case so make sure you read any offer you receive from a lender carefully before deciding whether it’s the right deal for you and whether you can afford it.

You can’t pay for big-ticket purchases

With most short-term loans lasting 12 months or less, you’ll struggle to find a lender who will be happy to give you a loan of more than £2,500. The reason? They’re concerned that paying back the loan and the interest which put too much pressure on your disposable income. Your disposable income is what you have left from your wages after you’ve paid out everything you need to pay out for over the course of a month (like mortgage, rent, insurance, Sky, and so on).

Lenders are much happy to allow borrowers to take out loans of up to £35,000 as long as the repayments are spread over a long enough time. This gives them the peace of mind that you can afford to make your repayments to them in full and on time. That is why you may find more options for personal loans rather than short-term loans.

What are the disadvantages of a 12 Month Loan?

 

The longer you borrow, the more interest you pay

Although by taking out your loan over a longer period, you will reduce your monthly repayments, you’ll end up paying more for your loan over time. 

Tougher acceptance criteria

The more money you borrow, the more risk a lender is taking. This extra risk means that it can be harder to find a company who wants to lend you the money. If you’re looking for cash loans for bad credit applicants, finding a loan company to work with you will be even harder. You may need to provide more information. It may take longer to be accepted and, therefore, longer to get your money.

786 Loans works with borrowers who want short-term loans (including long-term loans) and we know the best finance providers to present your application to.

Borrowing more than you need

Because you have up to 12 months to pay off your loan, many borrowers are tempted to ask for £1,000 or £2,000 more than they actually need. Please make sure that, before you apply for a loan, you know exactly how much you need to borrow and why. There’s no point to you in paying interest on the money you don’t actually need.

Early repayment charges

Some lenders will charge you for either overpaying your loan (so that you bring the balance down faster) or for paying your loan off early. Please check a lender’s terms and conditions before agreeing to any loan for repayment charges as, if you find the money to settle your loan early, this will be an unpleasant and unexpected surprise.

Account Fees

Most lenders charge you if you miss a payment or they have to chase you for payment using either a letter or someone from their own debt recovery call centre. Again, as with early repayment charges, check terms and conditions carefully before accepting a loan offer.

If a 12-month loan is right for you, get in touch with 786 Loans. Even though there are significant advantages to a 12-month loan, it’s important to consider carefully what the downside is if you have been offered one. You must shop around for the best loan so that you get a deal that’s right for you.

That’s where we come in. We’re not a lender, we’re a broker. We match lenders and borrowers in seconds using our state-of-the-art computer system. We’ll contact all the lender we think you’ve got the best chance of having your application accepted and, then, we present you with the very best deal we’ve found. You don’t have to accept any offer we find for you and our service is free at all times.

How to gain approval for low interest loans when you have bad credit?

Are you in need of urgent cash? People looking for loans have the wrong idea that they can only apply for mortgage loans, long-term loans but this is not so. Automotive financing, asset financing, home loans can help to borrow huge sums of money. But, you have the option of short term loans as well. In the short term loan, a borrower has to make repayment in a short period of time and even the approval comes earlier. Despite bad credit rating and absence of guarantor, the loan seeker gains quick approval for the loan. Yes! There are lenders who are there to help borrowers with bad credit. A short-term loan may be used for various purposes like clearing off past debts, paying utility bills or meeting emergency expenses. With the loan, you may carry out repairs in the home or home renovation, plan a trip to anywhere you want. In fact, you can do anything with the money you want. The question arises is how to get approval for a short-term low-interest loan. Interest rate varies a lot and different lenders offer their own rate of interest. There are ways you can gain approval for a low-interest loan despite bad credit.
 

How to bring down the rate of interest?
 

If you need cash urgently but have bad credit, you may apply for secured loans. A secured loan is that kind of loan where you need to present collateral. Lenders will give you approval for the loan no matter how bad your credit score is. Even the interest rate will be slashed down if you apply for a secured loan. On the flip side, you can improve your credit score by clearing off your past debts and then apply for a fresh loan. If there are no outstanding expenses you have to clear, your credit score will improve. You may then apply for low-interest loans and gain approval. The interest rate will be lowered down once you have a good credit score and do not have any bills to clear off. Know one thing that lenders will decline your loan application if your credit score is bad. If your FICO score is lower than 600, most lenders will decline your loan application.
 

Broker to help secure low-interest loans
 

It may be impossible to improve the credit score. You may find a loan broker to get you in touch with a reliable lender offering low interest loans. A reputed loan broker UK can turn everything to your side. A common kind of loan provided by lenders to those in bad credit is the debt consolidation loan. Avoid a lender who charges unreasonable rate of interest. Low-interest loan is a viable solution when your FICO score is less than 600. You need to find a non-traditional lender who is reliable. Refer to the online resource and check the legitimacy of the lender.
 

To back your loan application, look for a co-signer. The guarantor may be your family member, your spouse or friend. Go through the loan contract and then proceed.

Important facts you need to learn about soft search loans

Are you facing a lot of financial crunches simply because the salary is not sufficient? People who are into part-time jobs find it difficult to match both ends. The future is dark for the ones who lost their jobs recently. It is not easy to secure a job in these tough economic times. Debt is a real problem for those who are put out of a job due to some reasons. Financial institutions like banks and others will conduct credit check prior to agreeing to the loan. Although the credit rating is not affected the credit search will leave an impact on one’s credit file. A search footprint will be left on the credit report if there is any hard search on credit record. When one is out of employment or is involved in the part-time job, it gets impossible to repay the personal loans, mortgages or invest any money. You have to consider loans for part time workers to clear the debt. Loans for part-time workers prove the great help for those who want cash on an urgent basis. Loans will be approved despite the fact you have insufficient income. When you have sufficient income you can repay back.
 

It is easy to get approval for the loan
 

With the loan broker, it is easy to get approval for part-time worker loan. Choose a lender who just performs a soft credit check on your credit report. Soft search loans will not leave any footprint or mark in the credit profile or affect the credit score. Look for an everyday loan using soft searching technology to avoid leaving a mark on your credit file. The credit search will be performed by the reliable credit reference agency. A soft credit search will not leave any impact to be noticed by lenders in future. When other lenders fail to notice the searches performed on your credit report, only you can see the record and find the searches conducted. Choose a lender who shows some flexibility in loan terms and conditions.
 

Why take loans for part-time workers?
 

Loans for part-time workers must be secured when the income is insufficient and cannot meet the everyday expenses. Even if the income is not sufficient, it is possible to gain approval. Loans for those who have less income are now available. The living costs may be met with short-term loans. So, you can make payment for car repair, for home or make loan repayment without any issue. Credit rating will fall if the repayments are not done timely. Credit rating is crucial for gaining approval for the loan. But, the lender performs a soft search to find if the person can repay on time or not. Traditional financial and lending institutions like banks are hard on the lender. They impose hard rules on the borrowers. With the loan broker, you can avoid such rules.
 

Soft search loans are a fabulous way to avoid leaving a mark on the credit report. Shop around for the best rate to save on the interest rate.

Why doorstep loans for people on benefits are indispensable for UK?

Are you a working professional, who struggles to meet ends month on month? Do you need urgent loans to pay for your basic expenses? Are your current loan repayments too much for you? Do you think you have too little saved for too many financial obligations?

Whether you are financially broke, unable to find a job or a single mom or an old age pensioner, you can use an FCA loan broker’s free advice for locating hassle free doorstep cash loans for people on benefits. There are dedicated loan brokers who can help people on benefits find the absolutely affordable home credit facility.
 

Living on benefits could be frustrating and indeed show up rough phase of life. Those who are living on grace of benefits’ cheque are no lesser human beings and should not be treated as low income groups. Many ex-taxpayers sometimes file for benefits with change of events in life. Realising the real need to support such people, a broker can help you find affordable doorstep loan without any hassles.
 

It is a common myth and social evil to believe that those who are lazy and unwilling to work apply for government benefits. There is a long lost of hardworking UK citizens who need acceptance and financial support to get back on track in their life. 90 percent of benefits claimers have household income.
 

Think about single women with children, households with low paid income, school dropouts seeking job, victims of economic crisis, especially able people and their family, and young homeless people seeking benefits for continuing education and many more. There are many who seek loans despite benefits. It indeed is their right to seek equal opportunities despite the personal economic crisis.

Most of these people need financial support for a very short period of time. Herein using regulated broker’s advice could be a safe choice.

How do doorstep loans work?
 

A doorstep loan is a home credit facility. Like payday loans, these are extended to people seeking urgent loans. However anyone can make use of this opportunity irrespective of their employment status. As you inquire with a regulated broker about your need for credit, a regulated loan advisor would call you and share the available loan partners for your situation. You can compare the most affordable option.
 

The loan agent would visit you and discuss your financial state. They will build a tailored loan plan for you. You do not need collateral or guarantor for a doorstep loan. Unlike payday loans, doorstep loans can be repaid in weekly instalments. Small weekly instalments are easy to pay and manage. According to your repayment capacity they will build a plan.
 

There is no fixed duration for doorstep loans but you should try to keep the loan for a short period. It is fine if you need it for a couple of months. The secret of success of doorstep loan depends on how you would manage the timely repayment. Repaying loans on time is a key and you must ensure successful maturity of loan. It is advisable to have a robust repayment plan beforehand. In case you find work earlier than expected you can always prepay this debt. There is no prepayment charge.
 

In all, the need for doorstep loans is a real one and as a democratic and liberal nation we must support the cause.

Visit: http://www.786loans.uk/

Stay Safe with Loans at Home

Doorstep loans or home credit are loans at home whereby people borrow cash on the understanding that they will have the local agents from the lending organisations visiting their residences for collecting the loan repayments regularly. This is generally on a weekly basis. These are small loans available at flexible terms and conditions. The borrowers of these loans need to meet very few criterions for getting approved for such loans. However, these loans can come at high rates of interest.
 

Being Safe and Secure is Very Important
 

Home credit or door to door loans have made their special standing in the society of the present times. It is only because of this reason that proper legislation has been placed for the protection of the borrowers of such loans from unscrupulous lending organisations and loan sharks. Brokers have come into effective play for the help of borrowers who do not have any idea of the borrowing and lending market. Brokers help such borrowers in making the right move when it comes to choosing the lending organisations offering door to door loans.
 

Licensed and Authorised Lending
 

The lenders of a door to door loans need to hold a license making it possible for the borrowers to believe in the legitimacy and the authenticity of the lending organisations. Borrowers in coordination with the brokers can easily go through the licenses held by different lending organisations. The procedure is free and simple if carried out online.
 

Comparing Door to Door Loans
 

There are different loan comparison websites available on the internet that make it easy and convenient for the borrowers to compare the rates and the terms and conditions of a door to door loans available from different lending organisations. This is for the benefit of the consumers, the lending organisations and the overall economy.  Such comparison websites have set the standard for fair lending.

Doorstep Loans for People with Bad Credit

If you have bad credit score then you might probably know that lenders will not be willing to offer you a loan because of your bad credit. Lenders generally do not approve the loan applications of individuals with poor or bad credit histories. In these difficult economic times, having bad credit because of making late payments of bills or missed payments is inevitable. Fortunately, there are lending organisations in the recent times that are willing to offer loans to individuals with bad credit and these loans are doorstep loans no credit checks.
 

Doorstep Loans Available from lending Organisations
 

Doorstep loans are loans available to the borrowers right at their doorsteps. It is also worth noting that the repayments for such loans are also collected by the representatives of the lending organisations visiting the doorsteps of the borrowers. It is because of the ease of access of such loans and also because of the option available to the borrowers to go for the services of brokers that such loans have gained huge popularity in the market. A door to door loans without credit check is best available through brokers who have a clear idea of the lending and borrowing market.
 

Getting Hold of the Right Lending Organisation
 

The question here is how to go about finding the right lending company that provides such loans. Here, the question is also about how to place applications for no credit check door to door loans? The very first thing that the borrowers need to do is contact family and friends and enquire whether they have any experience in obtaining such loans. The search engines available on the internet can also be used for this purpose. However, it is best to avail the services of a broker because they are well aware of the legitimate and authentic lending organisations operating in the market.

The Benefits of Dealing with Short Term Loans for Bad Credit Brokers

Brokers are professionals or experts facilitating transactions between lending organisations and borrowers. They take up the responsibility of providing important documents between the parties and streamlining the entire lending and borrowing procedure in the best way possible.
 

It is worth noting that brokers neither originate do they provide funds for short term loans for bad credit. If brokers are unaffiliated with lending organisations, they might negotiate on behalf of the borrowers for better rates and terms. Whatever be the case, brokers get their fees from the lending organisations for locating the borrowers and bringing them to the lenders.
 

Brokers are Not into Lending
 

Brokers work in the form of independent contractors offering different loan products like short-term loans with no guarantor from multiple lenders also known as wholesalers. Brokers are professionals who counsel the borrowers on the different issues that they might be facing pertaining to loan qualification and credit problems. They help the borrowers in selecting loans that are able to meet the requirements of the borrowers in the best way possible.
 

Brokers also shop around for the best deals on short term loans for bad credit among different lending organisations offering such loans. Brokers take the applications of the borrowers and lock the terms and the rates of a loan with the lenders. Apart from these services, brokers also provide the borrowers with several disclosures needed by the state and the federal governments.
 

Additionally, efficient and professional brokers compile all the important documents needed for loan transactions including verification of assets and employment, credit report and so on. They complete the file or the application for a loan and hand it over to the lending organisations for fast approvals and quick delivery of funds into the accounts of the borrowers.
 

The Advantages of Broker Services
 

Borrowers with some special and exclusive loan requirements like short term loans for bad credit or short-term loans with no guarantor should always make it a point to take the services of a broker. This is because no one lending organisation offers loan products in each and every market niche.
 

Borrowers of loans come with different requirements. There are some borrowers who need loans for consolidating their outstanding loans while there are others with poor credit looking for loans. There are different types of borrowers in the market and there are lending organisations available to meet the varied loan requirements of borrowers. It is essential to use the services of a broker I this confusing market mainly because brokers deal with several leading organisations and thus they have the ability to find the type of loans required by their clients without going through any kind of hassle.
 

Additionally, brokers possess good experience in shopping the loan market. They are far better positioned in comparison to the consumers in choosing the right deals available from the most competitive lending organisations. Brokers also keep the lending organisations honest on the loan charges and rates. On the whole, brokers always make it a point to be advantageous and useful for the borrowers who are in need of short-term loans for bad credit.