Loans with Bad Credit No Guarantor- Should You Opt For

The bad credit is the hovering term that troubles the borrowers the most. Although most of people are aware of it but very few know it and true sense. Numbers of time, the UK borrowers fall in a trap virtually created by direct lenders; as a result, they accept high rated ‘ loans with bad credit no guarantor ’ as the only solution of ongoing financial crisis. Wouldn’t it be better to get some insights about the credit score and the private lending industry before taking any type of financial help?

Understanding Credit Score in the UK:

Credit score is no longer a qualification just for getting the mortgage, credit card and personal loans; it also affects the chances of getting mobile phone connections, car insurance , new bank account etc. The credit ranking in the UK is clouded by several myths believed blindly by majority of borrowers approaching to direct lenders after getting denials from the regular banks. Sometimes, the myths are powered by different sector businesses to make the better profitable deals.

In the UK, there is nothing like ‘universal credit score’. No term ‘blacklist or banned because of poor credit score. Each direct lender checks your credibility secretly in its own way. It means that if one lender rejects your application for ‘no guarantor loans bad credit’ on pretext of low credit score, the other lender may not reject it. Credit score is intuitive. Would you credit even a small amount to a person with recorded failures in repayments?

Good Credit Score Doesn’t Necessarily Make You Good Borrowers:

Yes, it may surprise you because you have been committed to repay all the dues on time so far. The numbers of lenders offer no credit check loans also but the credit score is used secretly to judge your future behavior of repayment; yes, no credit check loans are sanctioned on the basis of your current income or the promise you make to repay. Sometimes, little credit taking history also becomes a barrier because the direct lenders find it difficult to assess your repayment capability. Some applications for ‘loans with bad credit no guarantor’ are rejected because the direct lender doesn’t see the earning potential in crediting to good borrower. For the private lenders, the profitable customer is one who is perpetually under the debt but never defaulting because of making the minimum repayment. However, it doesn’t mean that you should carry on debt with intention for paying late. If this is the case with you, turn to other lender offering better proposal. Applying for no guarantor bad credit loan is a good strategy even if you have ‘not too bad’ credit score say around 500-600.

Borrowers Feel Comfortable With Bad Credit No Guarantor Loan:

The majority of borrowers in the UK hold unsecured loans. Unsecured personal loans have been preferred choice of UK borrowers. The unsecured personal credit in 2017 touched £200 billion figure first time ever since 2008; it means each household owes £7,400. The Bank of England’s report (2007) states that, no guarantor loan amount is growing fast @ 7%; it is a serious development. A report shared online by Money-Super- Market states, “Almost 28% borrowers take no guarantor loans even up to the half of their annual salary. 10% UK borrowers were found having the debt more than the annual salary.” It means that the UK borrower is least bothered about the cost of no guarantor bad credit loan and pays the debt back conveniently without taking much stress.

Should You Opt For Short-Term No Guarantor Loan?

Whether you are a self employed professional, salaried professional, unemployed or small business owner, the option for applying the ‘loans with bad credit no guarantor’ is always open. However, it is a justified decision only if you are certain about the expected income over which you rely for repayment. Bad credit no guarantor loans are credited at high interest rate with strict terms and conditions because of high risk involvement; therefore, the loan amount and repayment period should be kept the minimum possible.