How to Improve the Prospects of Loans for Bad Credit-No Guarantor

The need to borrowing may come across anytime. Almost all of us experience financial crisis and life; many of times, it is an unexpected development for which we are hardly prepared. Having adequate funds in saving bank account to meet out emergency financial needs is a good thought but if you use all the saved funds for apparent financial need, how you will deal with possible emergencies in future. Using 100% saving bank account funds for unexpected financial emergency may not be a good idea. So, what is the dependable solution that is practically good wit perspective of future financial goals?

No Guarantor Loan for Every Need: 

Borrowing from a direct lending agency seems the best possible solution to meet out any financial emergency if you own a bad credit score. The numbers of direct lenders in the UK like easycheaploan.com, Metro Loan specialize in loans for bad credit- no guarantor borrowers; it makes your way simple. No guarantor loans are available in range of modules: personal loan, payday loan, business loan, mortgage loan, short-term term loan, text loan, door step loan etc. Different formats of lending have developed to meet out the diversity in demand. No guarantor loans formats are developed for the particular purpose also like car repair loan, house loan, renovation loan, education loan, holiday loan etc.

How Easy It Is To Get No Guarantor Loan:

The average APR for a bad credit personal loan of £5,000 is found around 8.04% and 3.79% for the personal loan of £10,000 in 2018.

The success rate highly depends upon your credibility that is checked by your credit score. Can I get personal loan without guarantor if I have bad credit score? Yes you can do but you will have fewer borrowing sources. Such loans are costlier; offered for small amount; offered for short period. If you can afford the cost with justification to financial burden and can prove your regular income, getting no guarantor bad credit loan is simple.

What are the Key Factors that a Lender Accounts?     

More than £6 billion personal loans were outstanding London in 2018.

British lending industry is flourishing fast as the borrowers trust the private lending industry more than regular banks for on the time financial help with least formatives. The intervention of FCA to regulate interest rate and penalties strengthened the borrowers’ confidence in private financing sector. On the other side, lenders also try to make the lent money safe.

The six factors, a lender accounts essentially, are:   

  • Credit Score: Equifax, Experian and CallCredit are the top credit ranking agencies that offer free to sue calculators also; therefore, knowing the current credit score is no more a big issue. More than 77% of British direct lenders use Experian while 55% of lenders use Equifax. Callcredit credit score calculator is used only by 34% of lenders. Which credit score calculator you use doesn’t matter much because knowing your credit rank like bad, good, high, excellent etc helps you approach the better selected lenders. For example, if you have bad credit score and want a payday loan; you will narrow down your search for bad credit 12 month payday loans

 

  • Current profession: The professional status is the very first thing in loan application drawing the lender’s attention. The regular and steady job profile brightens the prospects of getting a rightly priced loan. The business loan is also made available for the bad credit people but you will have to provide average income proof.
  • Debt-to-Income Ratio (DTI): It is an important factor considered by all the lenders. Debt to income ratio tells about repayment capability. DTI is calculated by dividing the total monthly installment amount by the average monthly income; all the debts including auto loan, credit card payment, home loan, personal loan etc are considered to calculate monthly installment amount. The low DTI is good to get lower rate loan. If you have DTI around 40%, it is satisfactory.
  • Credit utilization ratio: Credit utilization factor is all about the percentage usage of borrowed money. Higher existing debt draws higher interest rate deal. The credit utilization under 20% is considered good. You are expected to keep the balance below 30 % of credit limit.
  • Borrowing behavior: Your borrowing behavior is recorded at credit report when you try too often and too many sources. Too many attempts of borrow go against your credibility showing that you are not financially stable.
  • Credit Report: The credit score and credit report are two separate credentials. Credit report explains your repayment behavior while credit score tells about ability to repay in future. Credit report tells about previous loans, current debts, repayment history, dues, criminal cases, bankruptcy, profession, address and work location, etc. The credit report, having details of all the people/firms that financed you, fixes the credit score. Any late payment stays on your credit report at least for six years. Before applying for bad credit loan, remove the entries existing for more than 6 years.

How to Improve the Prospects for Bad Credit- No Guarantor Loan:

  • Ensure your presence at electoral register
  • Arrange the regular income proof
  • Check your credit report and make it correct
  • Check for something that you can mortgage
  • Keep the monthly expenses details ready
  • Deal only with bad credit no guarantor loan specialists

Concluding Note: 

Preparation for getting a loan makes a lot of difference to repayment comfort and cost. By preparing ahead of time for borrowing, you can make it a good experience. Always think to maximize the benefit of borrowing; this approach wouldn’t limit you just to spending the money for current financial need but you will see many other ways to leverage the borrowing benefits like improvement credit score and job opportunities by attending short-term professional courses.

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