Bad Credit No Guarantor Loans –Boon or Curse

The no guarantor loans are getting high scale popularity in the UK because more and more people are prefer neither to pose someone as guarantor not mortgage some asset. The entire risk transfers to lender’s side; still, the numbers of reputed online direct lenders in the UK lending marketplace offer loan for people with bad credit. Why are they doing it? Indeed, they are worried for the non-payment of loan, therefore,  they fulfill the estimated loss by charging higher APR. Can the direct lenders in the UK charge any interest rate as per their own wish? No, the interest rates to be charged by the direct lenders are capped by FCA.

No Guarantor Loans in the UK- A Trend Powered By Necessity:

A loan guarantor is the person who promises to lender that the sanctioned loan will be repaid. In most of lending cases, the guarantor signs the contract stating that if the borrower fails to pay the loan amount or partial loan amount back, it would be guarantor’s responsibility to take over the pending dues. The term ‘guarantor’ is commonly used in financing industry and everyone knows the responsibilities in case the borrower fails to pay back. Therefore, finding a guarantor to get the guaranteed or secured loan is tedious task; and, this limitation drives the potential borrowers to direct lenders dealing in same day instant decision loans without guarantor. So, applying for no guarantor loan to a direct lender despite the higher interest rate is a trend driven by necessity.

No Guarantor Loan for People with Bad Credit- Boon or Curse:  

According to a report shared in 2017, the debit cards’ holding has gone up by 45% over the ten years. The report also states that total credit card borrowing increased to £66.6 billion in 2016 which was £61.3 billion in January – 2015. An online shared report states that the UK people in age of late 20s have worse credit score rating than that of teenagers. The gathered data indicates that that people in age group of 55 -60 have the higher credit score. If your credit score is not satisfactory at least in grade of ‘good’, the lending agencies will offer the no guarantor loan at higher interest rate or will simply turn down your application. Judging the no guarantor bad credit loan as a boon or curse depends upon the importance and justification of financial need. If you have no other way to meet out unavoidable expenses immediately, no guarantor bad credit loan is a certainly a boon because you can't get so fast financial help from any traditional source. It can be a curse by mounting up the dues only if you don’t pay back the monthly installment on the time. 

         

Should You Try Loans For Bad Credit No Guarantor No Fees?

What else do you expect to meet out emergency expenses or funds requirement? The few prominent online direct lenders offer bad credit- no guarantor- no fees loans; it means you don’t need to pay processing or upfront fee. Most important aspect you should think twice about is – usage of funds. If the loan amount is to be used for the inevitable need, it is good. Before applying for no guarantor loan at direct lenders, always consider twice and explore all your options; after all you pay the cost for availing this facility.

   

The Takeaway:

Making the bad credit- no guarantor loan boon or curse depends upon the borrower; if the loan is availed from the genuine lender and the debt is used for beneficial purpose, it is a boon; and, if the borrower fails or neglects paying it back on the time, it starts looking like a curse.  

Do You Need Short Term Loans For Unemployed on Benefits?

Unemployment rate in the UK is coming down slowly for over the couple of years yet the numbers of unemployed are quite high. Reasons may be different for being unemployed like lacking in adequate qualification, experience, career planning or limitations because of particular location.  Whatsoever may the reason be, everyone needs regular income to meet out the regular expenses. UK Govt. benefits are of great help for the people in financial crisis, yet, these are not sufficient to help the unemployed in managing the surprising expenses. The short term loans for unemployed in the UK, being provided by direct lenders, are trusted as the most dependable alternative to get some quick funds.

Loans for Unemployed People on Benefits:

Unemployment benefits are granted to the people who are unemployed because of no fault of their own like because a layoff. According to a recent survey report published on 2^nd January 2018, around 300,000 “forgotten unemployed” or the low income group people are missing out the benefits they could have claimed. The report also highlights that women aged 55 – 64 years didn’t claim unemployment benefits worth tuning to £73 a week. What is the reason? Don’t these people need money to manage their expenses during the unemployment period? Yes, they do but they approach the direct lenders instead of going to Govt. agency.

Loans for Unemployed with Bad Credit:

Having bad credit history is very common for the jobless people; therefore, the leading direct lenders offer the variety of loans for unemployed with bad credit to help them serve the concerned purpose. The more explored personal loan categories are short term loan for jobless people, emergency cash loans for unemployed, unemployed loans for people on benefits with bad credit etc. All these loans, with ‘ZERO’ documentation policy, are offered with realistic and flexible repayment terms at reasonable interest rate. The unemployed loan size may be £500 - £50,000 for 6 months - 5 years; however, the amount and repayment period depends upon the repayment capability of borrower that is assessed by the lender itself.