Are you the first time intended borrower in the UK thinking the borrowing a child’s game because of wide scale availability of direct lending agencies in online marketplace? It may surprise you that your thought line for the swift action is just the half correct. The high numbers of people having secured loans or loans without guarantor from private lending agencies don’t seem satisfied on one ground or the other. Whose fault is it? Are the lending agencies at fault or the borrowers?
What Should You Know Before Accepting Any No Guarantor Loan?
All the leading direct lending agencies claim for offering the best tailored unsecured no guarantor loans at the lowest APR. If it is so, why should you invest time and efforts in exploring and comparing the deals to save more? The answer is simple – better deal. Some consumer credit agencies ask the customers to paying a fee even before offering a loan. Why do they want yours bank details? The borrower must be aware of likely costs also and must check all the terms and conditions with liberty to ask for required changes. FCA has a ‘Consumer Credit Register’ that can be accessed online to find the registration and business details of short listed direct lending agencies like:
- Whether the agency has authorisation or interim permission for offering consumer credit
- Type of business activities authorised
- The trading name, main business and contact details
Unsecured Loans without Guarantee – A Preferred Choice:
Getting a guarantor, while having bad credit score or weak financial condition, is a typical task. In addition, no one likes to reveal the weak financial condition to the society. Getting secured loan by placing a guarantor or pledging some asset of equal to value is easier and more cost efficient also but this route doesn’t seem fit to low amount requirement. Involving a guarantor or mortgaging a property needs lots of documentation in addition to external legal help that often requires expert assistance of broker or loan adviser making the loan costlier. Therefore, unsecured loan without any guarantee is the best option for the small amount loan.
According to Bank of England, the unsecured consumer borrowing went up by 8.5% in July 2018. The overall figures indicate towards the possible slowdown in British economy. The mainstream banks and financial institutions are concerned over the significant increase in personal unsecured borrowing in recent years. The households are spending more than the income; the trend is pushing their finances into deficit. As a result, demand for small amount no guarantor loans is increasing. When mainstream banks and Govt. financial institutions are more than ever before strict in evaluating the credibility of applicants, the declining rate is considerably high. On the other side, the private lending agencies don’t take credit score as the only parameter to evaluate the credibility of borrower and lend the required money at easy terms. The personalized approach makes the online direct lenders the preferred choice for getting unsecured quick cash help in any format like business loans, personal loans, unemployed loans, payday loans, 12 month loans, long-term 24 monthly installment loans etc.
How to Choose the Best Loan Format:
Whether you need a secured loan or unsecured loan, choose the right format to save more at the loan cost. Short-term and long-term loans are made available at different APR. Not all the direct lenders deal in every type of loans; therefore, the selected direct lending agency must be specialized in loan type that you need. Unsecured loans for unemployed, employed, small business etc are available with flexible terms and conditions. Optimizing the loan amount and repayment period in the line of earning or available funds is first exercise you must do with perfection. Never cross the limit just on the basis of speculations. Exploring the options, comparing the proposals and negotiating the deals are the three mile stones on the road map of convenient to pay low cost borrowing from direct lending agencies.