5 Borrowing Hassles and 1 Solution for People with Bad Credit

Posted by

Burgeoning debt burden is a grave cause of concern for millennial in the UK. Right from student loans to auto loans, to payday loans, to small personal loans to credit card bills, the responsibility to manage these repayments is ceaseless in today’s world. With stagnating wages and limited appraisals on board, anyone who lives with a dream of owning a home or visit places with their loved ones, know how difficult it can become to borrow beyond this credit limit.

Difficulties in life do not come knocking the door. You need to ever stay ready to play cards rolled back your way. For instance if your car breaks down for no fault of yours or a tree falls on your roof, or water seeps through your bathroom ceiling, in any of these emergency situations you would need instant funds. However in the wake of high debt to income ratio, you may find it challenging to borrow loans.

Main street lenders are increasingly making it difficult to borrow with poor score. Five common hassles owing to poor credit rating are discussed below. Let’s seek out a definitive answer on how to borrow bad credit loans without any hassles:

  • Low Rating, Low Trust

    With low rating you tend to have low credit worth. Your low credit score basically indicates that you are not trustable for repayments. Primarily credit score is low due to default or delay in repayments, high credit utilisation, multiple loan queries, more unsecured loans, insufficient credit length. With low score, the lender would assume that you have not been regular in your past payments and possess very high loan appetite and thus they are likely to not trust you for more loans and payments.


  • No Guarantor

    In face of low creditability, the lender would seek some form of loan guarantee. If you could successfully rope in a high net worth individual to sign your loan application as a guarantor you can borrow with bad credit, however borrowing without a guarantor would be big challenge.


  • No Collateral

    When you need no guarantor loans, the lender would ask for collateral to approve your loan. But not everyone can borrow loans against their home equity. Finding unsecured loans for bad credit thus would be a far cry.


  • High Interest Rate

    One of the direct consequences of bad credit score would be high rate quote for your loan request. It would not be possible to search for a lender willing to offer you loan according to your affordability quotient.


  • Credit check

    Every time you would contact a lender they will raise a hard check to assess your credit rating making a footprint in your credit report. Too many rejections and too many loan queries would further hurt your score.

These FIVE fears of bad credit are for real. Anyone with poor credit knows how difficult it becomes to search for a desired loan with poor credit. While mainstream lenders fail to cater to thousands of borrowers with low score, booming FinTech players have a lot to offer you.

You can contact a loan broker online and get a direct answer to all of your borrowing troubles. Brokers are experts in locating rare loans for bad credit borrowers. They help you assess your credit repayment capacity and guide you to borrow according to affordability. They help you search various deals without initiating flags on your query. You can compare and choose the best deal without any obligation.

To apply for loans for poor credit with no guarantor you would simply need to resort to contact a loan broker and get direct access to available loans for your situation.

Leave a Reply

Your email address will not be published. Required fields are marked *