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.