Sighs of relief are difficult to achieve when you are going through a bad credit situation. Worst is the case when you encounter a sudden need for finances. Poor credit performance will prevent you from qualifying for loans in banks and providing guarantor is out of your capacity. Again, thanks to your poor credit performance that makes people do not trust your creditworthiness. Now, what? You certainly have no other option but to move and try to find some alternate ways.
Nowadays specialised new age lending is making its way in the loan market of the UK. FinTech Market is another name for it. With different approach towards the borrowers and their financial issues, this technology-tackled market is facilitating the flexible funding with ‘not so stringent’ policies. Here you can find no guarantor loans that allow you to borrow money despite bad credit scores.
Ask yourself these questions
Before you start searching for the loans ask the following questions from yourself. A clear mind inspires better decisions.
- Do I actually need a loan?
- How much should I borrow?
- How much can I repay each month?
Once you are clear on these points, seeking for loan options and prioritising them will be simpler.
What is the right way to apply?
In bad credit situations, it is very important to apply in the right way and follow all the measures that can help you get assured approval on the loans. It is necessary to focus your efforts in the right direction and then finalise a lender. With bad credits, a convincing lender may be a little difficult. However, there are a few things you can do to enhance the possibility of getting approval on your loan request:
Present recent financial records but ensure they are good
A borrower with bad credit is always a risk for the lender. Anyhow, you need to prove your creditworthiness. If your poor credit score is the result of some past mistakes and recent financial records are satisfactory, the lender may consider your loan request.
Salary slips will also help
While applying for the guaranteed loans for bad credit, provide your salary slips. A borrower with a regular income is more likely to have approval. The lender takes you as a reliable borrower with good repayment capacity. This is what every lender wants.
Make sure you have your name in the electoral register
This is the very first place where the lending companies check your name. Having your name in the electoral register proves you a responsible person and also a reliable borrower in the eyes of the lender.
Apply one lender at a time
Never send multiple loan requests to different lenders at the same time. Every time you apply for a loan, you get a search footprint on your credit records. In case you get a rejection, it will even degrade the credit scores and other lenders will not show interest in your loan application. It is always better to apply to only one lending company.
Loan companies with soft credit check will be better
In bad credits, one single mistake can prove hugely disastrous. To escape from this, you should apply to the lender that own advanced financial tools like a soft credit check. It does not leave any credit check footprint on your financial records and you stay safe from further degrade in credit performance. You can search for the loans for bad credit people with no guarantor and soft credit check.
Applying in the right way is of utmost importance when you have bad credits. It enhances the chances of getting approval and once you get it all your worries will nullify.