Poor credit score, followed by no guarantor support can make it hard to borrow money. Post Brexit and stagnant current economic scenario, borrowing unsecured loans in UK has become difficult; particularly for people with low income group or the ones with high debt to income ratio.
However with the advent of FinTech market, there is a dedicated group of lenders and borrowers who cater to the need of this segment. The Financial Conduct Authority keeps a strict eye on the conduct of regulated loan partners for security and benefit of consumers. If you too are looking for very bad credit loans no guarantor back up here is a step by step process to help you avail loans to mend your poor credit history. Though not a cakewalk, you can still avail the funds and work piece by piece to fix your broken financial health.
Assess your credit health
You can pull out your free credit report and assess your loan repayment capacity. Note down your liabilities and monthly dues for loan repayments and credit bills. This will help you have a clear idea as how much you owe and what are the gaps you intended to fill out. This basic information is one of the first steps you need to fulfill before beginning your search for bad credit loans without guarantor.
Contact a broker
Using expert advice is helpful when you are distressed due to mounted debt. A broker can help you explore different segments of loans according to your credit health. All you need to do is fill a form on their website and share your requirements candidly. They have state of the art filters to search the best deals available in the market.
Compare and choose
As the broker shares with you the available deals, you can compare and consider the most affordable borrowing method. For example, if you need a small cash gap loan you use a short term unsecured loan such as a doorstep or payday loan; however if you need additional amount to consolidate your debts or loans for urgent home repairs you might need a homeowner loan. Depending on your situation, a broker would share the best deal with you. While comparing the loans, APR percentage is not the only factor to consider. A broker can thus help you practically assess your situation.
Stick to repayment plan
When you borrow additional loans to meet the unwarranted expenses, it is prudent to act vigilantly and have a clear plan to manage your bad debts. You must put in all checks in place and ensure that you do not borrow what you cannot afford. You must have a cut for all the possible hassles you may face in future due to additional debt. You need to stay away from building a debt trap for yourself.
Whether you use a broker’s advice or use your own wisdom, you must craft a repayment plan. Stick to your repayment plan until you repay the loan successfully. It is advisable two have a couple of back up plans to ensure timely payment of loan amount. This will not only ensure success of your loan but would also improve your score. And you would not need a guarantor to stay afloat in either case!