According to a recent report released by Bank of England, the lenders in the UK have become more than ever cautious because of rising level of unpaid personal debt; as a result, unsecured loans dropped by 38.7% in January- March period of 2018. The credit card applications were also down by 26.2% in first quarter of 20-18. So, the options of borrowing from the mainstream banks and financial institutions are shrinking. The bright picture of this national financial situation is that direct lenders are offering the variety of quick cash loans at tailor made terms.
Quick Cash Loan – A Dependable Choice:
Recently I met with Lawrence Dsouja, an unemployed professional for over 2 months. He tried his best to get some cash help from a leading regular bank where he has his saving account but his application was denied just because of having credit score below 470. Ultimate, he approached the online direct lenders and got the cash help very next day. When asked about the cost; he said the cost was not the primary concern but he was more concerned to meet out the unexpected emergency expenses. According to a research report released by Mintel, 60% UK borrowers are least concerned with the loan interest rate. On being asked about the repayment period, he said that he has 12 months period to repay the amount, and he will do it comfortably as he is expecting a job within 7-8 days. If you too are expecting a job but nowadays you are facing funds shortage, taking quick cash loan is a dependable option.
Direct Lenders Respect The Borrower Better:
The credit score of 500 is generally considered OK for getting the loan from Govt. and private agencies but Govt. agencies have become too much strict to make their money secured in any case even if the borrower drifts to other lending source. On the other side, direct lender doesn’t like to miss even a single opportunity of lending even to the bad credit borrower. The risk taking capacity makes the direct lenders earn huge profit while the borrower gets the money when he needs it at the most; so, it is the win-win position for the both.
The fast expanding private lending market is posing the complex challenges for the lending agencies. The direct lenders can’t afford to miss even the single potential borrower irrespective to credibility. Although they check the credibility through online credit score checking tools but the low credit score is taken as the circumstantially developed trait. The lenders try to lend the money fastest as per expectations of clients; the online professionals understand the requirements before offering the best proposal.
The Variety of Quick Loans:
The direct lenders offer personalized service to keep the client intact for future needs; therefore, it has become imperative to cater the diversity in demand. Today, the product portfolio of each direct lender is enriched with variety. The sources for getting the quick cash loans are searched by using the terms like guaranteed loan, unsecured guaranteed loan, payday loan, short-term bad credit loan, no guarantor bad credit loan, quick cash loan etc. The time bound loans are also available; for example, 24 months loans, 12 month loans, 6 months loans etc.
More people try to get unsecured loan because they don’t need a guarantor or assets to mortgage. Although these are made available at higher interest rate but the included privacy and simplicity make these loans favorite to employed, unemployed and business owners all. The bad credit score in the UK has become very common, therefore, it is understood that the borrower contacting the direct lenders has poor credit score. To make the borrowers more confident and comfortable, the direct lenders offer no credit check quick cash loans also.
How to Minimize the Cost of Instant Decision Quick Loan:
Now imagine yourself like Lawrence Dsouja (I referred above). You know that only direct lenders can help you to manage the financial crisis as the mainstream banks and financial institutions would not entertain your loan application due to poor credit history. You set up your laptop and initiate few searches. Within minutes, you shortlist two or three direct lenders being impressed with their presentation. You apply for the required quick loan expecting the money same day to your account; and, you get the required amount. The task is not over yet; it starts now. Yes, the task of on the time repayment that affects the total cost of loan.
With bad credit history, you have limited space to negotiate but you are free for ‘optimization’ of need and terms. First of all, think- ‘Is the objective for cash loan justified? Is the cost justified?” Also explore the possibility of getting financial help from the relatives, friends or against insurance policies. Also explore the possibilities of getting mortgage secured loan because it is cheaper than unsecured loan. Minimize the loan amount to pay the minimum cost. It s better to take small amount loan for the time being instead of taking the big amount loan while the funds are to be used at later stage; it will it reduce the monthly installment amount. Minimize the repayment period at your best capacity; the long-term loan comes at lower interest rate than the short-term loan but you pay more up to the last. The other key areas where you need to focus are upfront fee, processing fee, brokerage, early payment penalty, late payment penalty etc. You must always deal even for the small amount quick loans only with direct lending agency to avoid the brokerage.
No fee quick cash loans without guarantor and upfront fee from the direct lenders are good only if you need a small amount for a short period to meet out emergency expenses.