Despite the presence of several private lenders and brokers in the UK, finding low cost long term loans could be a Herculean task. With poor credit score and bad credit repayment history, not many lenders are willing to lend for long term.
With long term loans, the associated risk for the lenders rise many fold. However there are selected few who help people with bad score and offer bad credit loans no guarantor or collateral. But before you look for no guarantor long term loans for bad credit situation, it is important to understand the basics of credit borrowing with low credit score.
With bad score, the lender possesses a very high risk by offering you credit. So they charge you high interest rate. You should be ready to shell out more from pocket when you seek long term loans with poor score.
When you seek loan for longer period of time, with loan duration, risk also rises. Thus finding a long term loan without a collateral becomes far difficult than the one with assets of high value such as home equity. Even the presence of a guarantor or a cosigner can help you tap a better rate of interest. But when your credit profile is unsecured, not many people would come to your rescue and serve as guarantors. So, you should use services of a loan broker or a financial counselor, to find no guarantor long term loans.
The brokers are basically the mediators between lenders and borrowers. They help borrowers find the best deals according to their credit profile. The need for long term loans for bad credit score arise after a lot of planning. The idea behind additional loans is to improve the credit report gradually over the time. The brokers help borrowers locate the available loans for credit improvement.
From long term loans for unemployed people to unsecured personal loan meant to consolidate your loans, the broker can help you find loans to match with your requirement. The unemployed loans are specially made to relieve the financial burden of jobless people. They offer delayed repayment plan and allow you to repay after three months or six months from the date loan begins. This very feature takes off stress of repayment while you are searching for a job.
When one loses a job despite being under the debts, one can apply for long term loans for unemployed people either as a consolidation loan or refinance the existing loans. In either case benefits of delayed repayment would come as a big relief and provide you the much needed credit management plan.
Being a long term loan, the decision is going to affect you for many years to come. You should ensure that the loan instalment is absolutely manageable. If however it adds an additional pinch in your pocket to arrange for the repayment every month, chances are high that you may fail to meet the target with additional expenses in life. Even a single nonpayment of bad credit loan would defeat the purpose and hurt your score to irreparable heights. So always ensure that you buy an affordable loan.