Securing good credit score is one of the prerequisites of obtaining loan. In fact all the terms on loan agreement including the rate of interest are defined according to your credit rating. With high score, your loan application is preferred by the lenders. It is expected that you can afford the loan and repay it on time.
Your score basically depends on 5 factors: regular loan repayments, loan mix you use, credit utilization ratio, age of loans and number of loan queries raised by you. There is no universal formula to calculate the score however. Each lender may slightly differ in measuring your credit worth. However if you flout any of these factors, your credit rating is bound to suffer and your loan application would be rejected too.
Borrowing Hassles with Bad Credit Rating
With poor credit rating your loan application is thus outrageously rejected by the main street lenders and private lenders are also expected to quote very high interest rate. The biggest hassles of borrowing with bad credit rating are:
- Low credit rating turns to low loan eligibility
- There are very few lenders who deal with bad credit borrowers. It would be a great hassle to search for a loan provider.
- Bad credit loans come with higher interest rate and additional processing charges. Another hassle is thus to locate a low cost loan.
- Owing to all these discussed issues searching long term loans for bad credit is a very tall order.
- A lot of loan sharks are also active in the UK FinTech Market. These unscrupulous lenders are mostly on a look out for desperate borrowers. You need to be wary of such lenders at the same time.
Finding bad credit loans with poor rating
Most borrowers with low credit rating are thus willing to settle with less than the best unsecured loans. However you need not choose just any deal available online. You can seek professional advice and minimise your borrowing hassles and improve your credit health.
You can use broking advice for:
- Searching a reliable and experienced lender.
- Availing access to closest match loans in the UK. Brokers can search difficult-to-search deals such as long term loans with no guarantor at the best rate.
- Establishing your credit worth for an additional loan. For example, sometimes when you fail to get loans because of your current loans or low income, broker can mediate with lenders and prove them how you could afford the loan and intend to repay successfully.
- Mending your credit rating.
- Making a successful credit improvement plan using bad credit loans.
Brokers extend tailored loan advice free of cost and thus it is recommended to use their loan advice. Whatever be your credit hassles, you could avail deals with the least hassles. Searching bad credit loans on own could be too troublesome and tiring. However when you contact a loan broker, you do not need to worry about loan rejection. You get complete choice to make your loan decision. There is no obligation, whatsoever.