“It is said that the world is in a state of bankruptcy, that the world owes the world more than the world can pay.”_Ralph Waldo Emerson”
Finance plays a lead role in every household. We may say money can’t buy happiness but the ugly truth is that it can actually buy happiness or some part of the happiness that we desire for. If thathad mattered at all,the term “loan” wouldn’t have existed at all. History has evidence thatthe first bank started in 2000 BC in Sumeria, India and Assyria where the merchants of the world provided grain loansto the farmers and traders who carried goods between the cities. The Bank of England, established in the year 1695, was the 1stbank to issue permanent bank notes. Initially, it was handwritten and issued on deposit or as a loan. The borrower promised to pay the bearer the value of the note in return. Thus, it was the 17th century when the modern banking practice began and is still continuing in a quite advanced version.
Scroll down to know more about loans:
What is a loan?
Well, it is an amount of money borrowed that is expected to be returned with interest. The interest may be of a higher rate or lower rate. It depends upon the kind of loan that you borrow.
Why do people borrow a loan?
Different people borrow loan for different reasons. For instance, some borrow a loan to start a business, some may be running short of cash before their payday, or some may need to complete their education, etc.So, basically, we can say that when someone is in short of credit the person borrows a loan to satisfy his or her needs.
How many kinds of loan are available in the UK?
There are various kinds of loan available in the UK. You get a loan for every reason. A few types of unsecured personal loans are listed below:
1. Holiday Loan
2. Payday Loan
7. Christmas Loan
8. Bad Credit Loan
9. Instalment Loan
10. Long-term Loan
11. Short-term Loan
12. Unsecured Loan
13. Homeowner Loan
14. No Guarantor Loan
15. Self-employed Loan
16. Debt Consolidation Loan
17. Quick Loan
These varieties may sometime compel you to choose the wrong kind of loan. As the more options, we are provided with,it becomes more complicated to decide and choose. Andwhen you are going through bad credit situation, it becomes more strenuous to decide the right loan. So before applying for a loan, research on itand read the rules and regulations carefully.
How to choose a lender?
The UK loan market is flooded with loan sharks but there are a few FCA authorised lenders. For a safe and secure borrowing of money opt for those lenders who are regulated by the Financial Conduct Authority. An authorized loan broker helps to find authorized lenders. If the lenders are not authorized, they may create a nuisance. For instance, they may interrupt in between your payment period to increase the rate of interest or prepone the due date, etc. Insecurity, unsafe, fear, loss etc. underscores the unauthorised lenders. Don’t get trapped by illegal lenders. Be aware and be cautious before borrowing a loan.
What is a bad credit?
Bad credit means your credit report reflects that you are not eligible for taking out a loan. A credit report contains your financial behaviour. Maximum numbers of people borrowing a loan are those who go through a financial crisis. During these times, getting a loan is quite arduous process. It becomes even more difficult if your credit score comes down and if you have no home to keep asa mortgage. Today it is also difficult to get a guarantor. No one wants to put themselves in other’s shoes. You are left with your own when you need help. Thus, loan for bad credit is introduced. No credit, no home, no guarantor are required to acquire a loan if you have a bad credit.
How to get a good loan with bad credit?
In the UK, there are some authorised loan brokers who you can rely upon. The FCA is the financial watchdog of the UK. And reliable lenders and brokers abide by all the rules of the FCA.
BestUnsecuredLoansprovide loans to those who have a bad credit, or people with no guarantor.The loanwas introduced to help those who need it. Thus, it would be unfair if the loanis not provided to them who needed it the most. However, please note that your credit score is not the only deciding factor while approving a loan.
Loan brokers help you to find lenders who would be ready to impart your loans according to your needs. As we all know that Christmas is approaching so the time to spend some money is also approaching.And why not, you can’t celebrate any festival without spending money in it. Gifting has become more of a show than tradition. Most of the people spend on gifts than anything else. According to a report among 2000UK consumers, about 37% of them are spending the major part of their Christmas budget on gifts for others. Brits spent an average of 1149 pounds on Christmas the previous year.
Modernization has brought many changes in the way of celebration. Most of the people spent their holidays by travelling to their favourite destinations. There were 72.8 million visits overseas by the UK residents in 2017, the highest figure recorded by the International Passenger Survey (IPS). The most common reason for travelling abroad was for holidays.Even then they cannot run away from spending money. Food and lodge travel and gifts also take away most of the savings. Christmas celebration has changed a lot but the ethos of giving and sharing will remain forever.
For that reason, Christmas Loan and Holiday Loan were introduced. So, if you are going through a bad credit then opt for these loans and enjoy a hassle-freeholiday with family. Good loans, generally, means the loan that you acquire during your bad credit days. Explore the UK market, get connected with the authorised loan brokers, research on loans and then apply for it.