Be it financial emergency or wrong financial decision(s) in the past, availability of credit plays a crucial role in staying afloat despite temporary cash lapses. In wake of constant struggle to meet your monthly loan repayments and credit bills, many borrowers look for consolidated loans or refinancing options to ease the instalment burden.
However it is not a cakewalk to get approved for long term loans. Most main street lenders pick and choose their clients. In fact the central bank of the UK, the Bank of England, has also admitted that owing to uncertain financial situation the lenders seek to use stricter lending policies for unsecured loan in 2018. To avail longer loans the hardest call is to establish your credit worth to the lender. However with the development of FinTech industry you can find several private loans online.
Let’s find out how to get approved for long term loans for bad credit history.
First things first, there is no magic wand to help you improve your profile. Improving credit rating is a gradual process and thus you must stay away from any counseling agency suggesting you to improve your rating miraculously in a short span. No one can delete your bad credit history from your credit report. Period.
Next, you must also be careful who you are dealing with. For a lot of inexperienced and fraudulent companies are always on a look out for borrowers with pressing financial needs. You need to ensure that you use a trustable loan adviser to help you find a licensed lender. With a broker by your side you could be rest assured of locating reliable loans with no guarantor or collateral would be required!
Debt Consolidation Loans
Being a homeowner you can avail a debt consolidation loan according to your repayment capacity. Even when you need unsecured loan, owning a home makes you a reliable borrower. Most lenders find homeowners as more trustworthy. You are expected to be sincere in the repayments being a homeowner.
It doesn’t imply that you cannot borrow a long term loan as a tenant. The terms of loan and interest rate may vary however. So including a loan broker’s advice is a must step to search the available deals in the market.
Many borrowers look for long term loans to pay out part of their current obligations. If you too seek personal loans to repay your debts, make sure you take every effort to get a loan at low rate. Generally unsecured bad credit loans would cost you very high and thus you must be really careful before signing the deal. Use loan advisor’s guidance and get your loan affordability assessed.
In fact it would not be an exaggeration to point here that assessing your profile is one of the safest ways to know if you would be eligible for loan or not. As per FCA directives, a loan broker is expected to share only practical deals. Before picking a deal it is important that you are confident to repay the loan.
Keeping all these pre requirements in mind, it is imperative that you use a professional to assess your eligibility for long term loans.