Personal loans are one way of financing for essential expenses, which doesn't fit in your budget. Whether you need to bridge a financial gap or want to buy something without slipping into your savings, getting a low-cost loan can help.
They are positively better than payday loans for times when you need to borrow money for planned or unexpected expenses. But getting a personal loan without giving a guarantee can be difficult.
An unsecured personal loan is one that is not backed by collateral. Because they are not collateralized, unsecured loans, cost more than secured loans and are often difficult to obtain. The loan is granted on factors such as a person’s income and credit score, rather than being financed by anything concrete. Personal loans can be paid in fixed repayments on a monthly basis until the loan term terminates. Nonetheless, there are a few things you can do to increase your access to unsecured loans at the best available rates.
• Boost Your Credit Score
If you have ongoing information that you will require a loan, use the time to improve your credit score. This can be done by paying old debts and cleaning credit card balances. Also, avoid acquiring new credit cards in the period before applying for the loan. In addition, search your three credit history records for errors and have the credit bureaus to fix the mistakes right away. This will help you get access to unsecured loans.
• Bear Your Repayment Plan
A loan officer is more likely to look positively upon your loan application if you provide a written budget and additional documentation displaying your ability and pledge to repay the loan. If the loan needs monthly repayments, register that you can afford to make the repayments without financial difficulty. It will also help if you show a good work record.
• Avoid Loans with Opposed Terms
If possible, avoid credits that have high contingent fees. For example, some lenders may want to impose a prepayment fine if you want to pay off the loan early. Others may have large application fees or may charge consecutive interest on your outstanding balance. Keeping all this in mind, be sure that you don't fall for any such lender rather, opt for an FCA regulated lender who discloses, all the potential costs associated with your loan. Don't sign on the agreements without full disclosure about the loan and its terms.
Lenders offering no credit check personal loans, or guaranteed loans are probably not following the FCA responsible lending guidelines. So, you can’t be sure that trusting your confidential details with these lenders is safe. Although, there are many personal loan brokers in the UK like Oyster Loan who offer poor credit loans to help borrowers pay for emergencies, which are legal and fully authorised by the FCA. We always carry out soft credit checks on all our applicants, to ensure that presenting them in front of lenders will help them get a loan and won’t harm them financially.
WARNING: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.
Hi, my name is Jully O'Neill. I live in London and I work as a financial writer at Oyster Loan. My job is to enlighten the citizens of Britain about the benefits of unsecured loans with an FCA regulated broker like us. I fill the gap of information about these services and the lenders available to you.