An individual might be dealing with too many problems but only one solution can deal with hundred problems. Yes, that is true you may always deal with them but with one solution you can smooth your thorny path. Well if we talk about finances, taking a loan as a solution can only crease your way for your future investments. HERE, let us give full space to the people, who live on rental property and want to clear their loans without having an owned property. Fortunately, lenders do give loans to the people who lived as the tenants. With planning to buy a new house or wants to pick a loan for small personal need, lenders have tenant loans for Short Term as well as for Long Term duration.
Now it’s time to know how both the options are possible.
Short term solution:
Under the roof of a tenant loan, lenders have shown some sort of flexible lending approach. In such policy, they do not hesitate to fund those individuals, who are struggling with their adverse credit scores from the traditional lending institutions. If you want an example of it, then it is essential to look at the on-going FinTech market in the UK. Here, there are few lenders providing unsecured personal loan for bad credit with no guarantor. You can get this loan for a shorter period and the interest rates will be depending on your borrowing amount. Therefore, if you plan to pick for this borrowing, then you do not have to show a guarantor for it. Even if your credit score is exhausted then also the doors of the lenders are still open. In situation like that, you can make a good use of it to rectify your trouble for small duration.
Long term solution:
If you want to secure a loan for longer period then you must planned expenses first because only with smart work you overcome your financial troubles. If you want to make an investment for more than one year than tenant guarantor loans from direct lenders can become your best deal to bank upon. However, you must be prepared with having a person as your guarantor to back you in making the repayments. If they have that person, they can avail amount for the longer duration, so a lender has to be 100% sure before lending the money to borrower. The second benefit of qualifying this loan is that even if your credit score has gone down, then also you can select this loan but make sure that the guarantor must carry a good credit report.
Note: A lender will keep ‘income status’ as a priority, when a borrower is carrying a low credit report.
Interest Rate, analysis!
However, it is always said that interest rates are flexible. How to become sure before hand? A lender will always give you clear information but by knowing the factors pre-hand, gives you the confidence to make a better deal. On three grounds your interest rates are decided.
- The borrowing amount may decide your interest rates. Likely, if a client is taking a loan for shorter period then your interest rates may touch high level (if loan amount is less, then interest rate will also be according to the amount). And if you plan to go for longer period, then interest rates can be lower for you. (All is on your amount).
- Your income status may also bring some cool breeze on your rates.
(Attention! If a borrower has a good income, then a lender can consider giving some relaxation on the interest rate.)
- In both long and short-term cases, if a borrower has a good credit report then he or she may get the advantage of it.
Note2: If a borrower has a bad credit then his current income proof can become the scissor to cut the interest rates desirably.
The bottom line…
Resume your dreams, so that you can fulfill it with much ease. With lenders pure policies, you can release the stress while planning your future expenses.