We all know what a loan is but for many of us the ways of borrowing a loan is still unknown. Loans are often borrowed when we are in deep financial crisis. The amount of cash that we have may not be enough to cater all our needs. So, we need loans for some or other reasons, and sometimes, those needs are unavoidable. In bad times, especially, you won’t find anyone standing with you to help you out with credits. Nobody will put themselves in your shoes to see your conditions. It becomes quite difficult for us to arrange for the funds that can help us out. Thus, it is quintessential to know about loans. The UK market is flooded with loan sharks to lend you loans in unethical and illegal manner. It is advisable to take loans from the FCA regulated brokers who have association with authorized lenders.
When it comes to opting for a loan, a person has to go through mandatory credit checks to know the loan eligibility. There are 2 types of credit checks, (a) Hard credit check, and (b) Soft credit check. A hard credit check is a mandatory step taken by the final approving person (generally a lender) before providing a loan and it leaves an imprint on your credit score. While as a soft credit check is initiated to assess the loan eligibility and it doesn’t leave any footprint on the credit score. Which means, that the credit score will not be affected during the credit check.
Rejection for a loan has become a perennial issue for people with a bad credit score. But there are a few lenders in the UK market, who are willing to provide a loan such people. They will consider the current repayment affordability of the customer and then will approve the loan request. BestShortTermLoans is an FCA registered loan broker, which initiates a soft credit check to assess the loan eligibility.
But how do a person with a bad credit score gain access to loans? Listed below are 5 ways to get a loan even with a bad credit:
1. Homeowner Loan: A bad credit situation may knock at your door at any moment. But there are a lot of options in the UK market for the homeowners with bad credit. Homeowner loans can be taken out against the value of their house. They can use their house as equity and borrow loans. The FCA authorized broker has authorized lenders who lend loans to homeowners. This has become a very popular method of borrowing in the UK among the homeowners.
2. Self-employed Loan: It becomes difficult for the self-employed people to borrow loan as they do not have an appropriate financial track record. Now self-employed people need not worry about it. There are ample number of FCA regulated brokers in the UK market. They help borrowers to find lenders who lend loans, loans with bad credit and loans with a low rate of interest. Self-employed loan helps to reduce their financial burden. The person applying for a loan has to prove their repayment affordability.
3. No-credit Check: “No credit check loans” are illegal and unethical.No authorized brokers or lenders in the market provides “no-credit-check loan”. It is mandatory as per the FCA to impose a credit check to assess loan eligibility. Although there are many loan sharks in the UK market,there are only a few FCA regulated lenders or brokers. Some of these authorized bodies perform a soft credit check to assess the loan eligibility. This doesn’t impact credit score.
4. Payday Loans: There come some days when you run out of money before your payday.It is that period of time when you borrow a payday loan.It is an amount of money lent at a high rate of interest. Although the rate of interest here is high, it is the most borrowed loan in the UK market. This loan is borrowed during emergencies. It is a short-term loan and so has a short-term impact. Most of the people in the UK borrow this loan more than one time in a year.
5. Personal Loans: Personal loans with bad credit is strenuous to acquire. But now there are FCA authorized brokers in the market who offers different kinds of loan. Best Short Term Loan brings forth loan for short-term and lowest available interest rate with the panel of lenders. One can borrow personal loan for any personal purpose. It is easy to manage and if it is an FCA regulated broker it protects the consumer’s security too.
These are 5 ways to get loans with a bad credit. The loan has saved people during financial upheavals. The ways of borrowing a loan differ from each other. Before borrowing loans, know the rules and regulations. Also,always borrow loans from FCA regulated agencies that have authorized lenders. So, now it doesn’t matter if you have a bad credit or a good credit, because there are various kinds of loan available in the market to help people suffering with a bad credit.