Bad credit score owing to cash crunch or temporary financial hassles is something one should deal with as early as possible. You should take every effort to safeguard your credit score from tumbling down. Whether there is an urgent need to buy household equipment such as a boiler or short term financial hassle, being a homeowner you can raise hassle free short term loans with bad credit in the UK.
You can contact a loan broker and get introduced to private lenders offering short term loans for homeowners. While seeking bad credit loans however you need to keep in mind that it is not a bridge gap loan, but a practical step to protect your credit situation.
Before planning for home owner loans, have a repayment plan in place. With secured home owner loans, you put your home equity at risk. Thus it is important to ensure the successful repayment of loan on time.
Let’s discuss 5 common situations when people (homeowners) in the UK apply for bad credit short term loans.
1. Bad credit score
Short term loans are easy to manage and repay. Many people who want to improve their credit score in a short period apply for short term bad credit loans. Applying as a homeowner helps them avail better interest rate and ease of payment. With ease of repayment it is more likely to repay the loan on time. As the loan matures on time, it helps them raise their credit score.
2. Home improvement
Using home equity you can raise comfortably for small home improvement projects. Home renovation helps to enhance the value of your home and improve your credit worth. Thus it is common to use homeowner loans for home improvement.
The cost of short term loans is less and thus when you have a secured repayment source it is better to apply for short term loans only. Usually people use small home owner loans for small projects such as kitchen renovation, bathroom reinstallation, sprucing up walls, adding a store room and more.
3. As personal loans
When you apply for small personal loans, owning a property helps. For lenders rate credit worth of home owners above the tenants. Being a home owner you get better rates even for unsecured loans.
With personal loans you can meet several issues at the same time. From your credit outstanding to impending expenses all could be dealt with personal loans.
4. Unemployed loans
With pink slip in hand, most lenders shy away from extending loans. However being a home owner, it is easier to get an unemployed loan. Thus many borrowers struggling to avail loan without a job, opt for unemployed loans as homeowners.
Unemployment is a temporary issue and by applying for short term unemployed loan you can remain stress free till the time you get a new job. You may consider applying for a secured or unsecured loan according to your credit situation.
5. Business loans
Small businesses are always on a lookout for cash resources. Sometimes when a business’ credit limit is exhausted and they need urgent cash, people use their home equity to raise a short term business loan.
Whether you need loans for these 5 purposes or more, never forget to contact a loan broker and seek a professional help.