The term ‘bad credit loans guaranteed approval’ attracts most of the potential borrowers in the UK but it has limited scope because no Govt. agency in the UK offers bad credit loans with guaranteed approval. It is the most sought after loan product in the UK private lending industry because the numbers of people with bad credit score are very high. When the regular financial agencies follow the strict norms to evaluate the credibility of borrower and to assess the possibility of return of loan amount in due period, the direct lenders follow a flexible approach in granting the short-term bad credit limited amount loans.
Bad Credit Loans – Power of Direct Lenders in the UK:
The short-term- unsecured bad credit loans are also known as payday loans; the borrower is expected to repay the entire loan amount by the next payday. Some direct lending agencies offer installment plan also facilitating for repayment period extension up to several months. Over the million people in the UK take short term bad credit loan every year; many of these take debt more than once. Lending to a borrower with bad credit score is full of risk; yet, direct lenders offer bad credit score or no credit check loans with guaranteed approval. Why do the direct lenders take risk? How can they offer guarantor approval loan without credit check? How do they promise for same day loan? It is because of difference in approach.
The guaranteed bad credit loans empower the direct lenders to survive and grow in competitive and challenging marketplace. Because of high risk factor, these loans are granted at higher but affordable interest rate. The income from the interest powers the direct lenders to survive while the instant cash help empowers the borrowers to swim safe to shore after managing the financial crisis.
Bad Credit Guaranteed Loans In The UK Are Safe And Legal:
The bad credit loans in the UK are legal as per British law. The direct lenders are regulated with strict restrictions; the new rules are enforced to protect the borrowers from predacious lending practices. The short-term leading is regulated by Financial Conduct Authority (FCA); therefore, the selected lender should be FCA authorised. Today, direct lenders have to keep maximum daily interest rate below 0.8%. Also, they cannot charge more than £24 per £100 loan. Also, the direct lenders cannot charge more than double the principle loan amount in any case. The new guidelines strengthened the trust of willing borrowers further as they feel safe in lending from a private financial agency and protected by FCA regulations.
Is It Easy To Get Bad Credit Guaranteed Loan In The UK?
Yes, almost any UK citizen with over 18 years’ age can avail this facility of bad credit short-term loan irrespective to credit score. Although the credit score is the primary parameter to judge the suitability of applicant at Govt. financial institutions but direct lenders do not take it solo criteria to assess the repaying capability of their client. The borrowers with good credit score succeed to get the loan at lower interest rate while the bad credit score draws more interest rate because of higher risk involvement.
Does the borrower need a broker to get on the time financial help? The answer is – no. Whether borrower is applying for no guarantor loan or secured loan, the borrower hardly needs a broker. Leading direct lending agencies offer no broker instant decision same day unsecured loan also to meet out the diverse demands of their clients. The entire process is so fast and simple that even the first time borrower can avail this facility irrespective to his location. The online presence of direct lenders has crushed the geographical limits; the borrower can choose any direct lender on the basis of proposal. How much time does a borrower need to get the funds in bank account? Most of the direct lenders in the UK offer wide range of same day loans; and, in most cases, the loan approval is made within 30 minutes. Once the borrower agrees with the proposed deal, the funds are transferred to borrower’s account by the next working day. The quick cash loans at borrower’s door step are also available but these are restricted to short-term and small amount.
Can a Borrower Make The Bad Credit Loan Cheaper?
A report dated April 2018 states, “The UK people are feeling poorer with each passing year. Other reports also support this feeling of majority of common UK residents; most of the UK residents are not comfortable in managing the regular expenses with existing monthly income. The “Exit Day” (29th March 2019) is said to be the major reason for the poorer financial condition. When high numbers of UK residents have bad credit score, the bad credit short-term loans being offered by direct lenders appear as the only trustworthy solution to manage the emergency expenses. But, managing the cost of availed loan is a tricky business for the borrower.
The deals of direct lenders are always open for negotiation and these are tailored for the individual borrower with flexibility; therefore, making a deal the best perfect depends upon the borrower’s skill to analyze, compare and negotiate. Remember, the invested time and efforts often result in cost saving. The optimisation is best key to make the ‘bad credit loans guaranteed approval’ cheaper than the borrower feels at the start. The very first thing a borrower needs to do is to assess the requirement in terms of importance and possibility of delaying the requirement. If the lending is inevitable, the next level is to minimize the required fund and repayment period.
The Bottom Line:
Apply for ‘bad credit loans guaranteed approval’ only when the lending from direct lender is inevitable.