One way of applying for a loan is to apply directly with the lender. You can do this by either going to the bank on the high street or going to a lenders website online. However, this is not the only way to find a loan and there are advantages and disadvantages of applying for loans for bad credit no guarantor no fees direct lender.
Here we are going to look at the advantages and disadvantages of applying for a loan directly with a lender and then look at an alternative way of making a loan application.
Advantages of Getting a Loan Directly with the Lender
First, let us look at what the advantages are when you apply for a loan directly with the lender.
- You don’t have to pay any additional fees on top of the loan to a broker
- You might be able to undertake the entire loan application online.
Disadvantages to Obtaining a Loan with a Direct Lender
- You have no idea whether the lender will consider verifiable income and your current circumstances or if they only go on your credit rating
- If the lender only takes your credit score into account your chances of approval are lowered
- You might have to go to many lenders websites and make many applications before you find a lender willing to offer loans to people with less than perfect credit scores
- All of the applications for credit will be noted on your credit file and these go against you
- The lender might not offer an instant decision so you might be left waiting for them to get back to you via post or email.
An Alternative to Loans for Bad Credit No Guarantor No Fees Direct Lender
There is an alternative way to look for loans online. You can get access to lenders who consider all circumstances and loans that do not require a guarantor. However, a small fee is involved and it is not a direct lender.
Before you say, but I do not want to pay fees to a broker, there are some advantages to choosing this option.
So let us weigh up the advantages and disadvantages.
Advantages of Going for a Loan Using a Broker
First, we are going to check out the advantages of going for a loan using a broker.
- You don’t have to make a blind search alone going through websites of lenders to try to find a loan
- We provide access to a large panel of UK lenders who consider all circumstances
- The lenders in our panel take verifiable income into account not just credit scores and your past
- You only need to fill in your information once on our website for us to search on your behalf with lenders who have offered loans to people with poor credit in the past
- As you are only making one loan application by filling in your details once you are not going to have numerous searches noted on your credit file from various lenders
- It takes minutes to give us your details and we can give you an instant decision
- It cuts down the time and stress of looking for lenders yourself and applying with the hope they will offer you a loan
- The lenders that we work alongside offer some of the most competitive interest rates out there for people with less than perfect credit ratings
- Lenders offer a wide variety of loan types suitable for all needs
- If we match you with lenders you can visit their websites directly to check out the loan options and finalise the loan
- If approved and you sign up for the loan money may be paid into your bank account within hours of your first making your application.
Disadvantages of Using a Broker to Find a Loan
Now onto the disadvantages of using a broker for a loan.
- You have to pay a small fee.
We cannot think of any more reasons that go against using a loan broker such as ourselves and the advantages far outweigh the disadvantages. Of course, essentially it is down to what you want and whether you still want to look for loans for bad credit no guarantor no fees direct lender yourself.
Easy Steps for Loan Application with Our Help
Finding a loan can take hours, perhaps even days, if you have a bad credit rating and you go it alone. With us, it might take just minutes. The entire application process is easy and everything is undertaken online.
The first step is to tell us how much money you would like to borrow. Then give us an idea as to how long it would take to repay the loan.
Next, give us details about your finances, including how much your regular monthly income is and what you pay out each month. Also, tell us when your next paydays are.
You do have to be at least 18 years old and have a regular income paid into a bank account in your name, with a debit card attached to it
Tell us where you live and how long you have lived there, along with a few more details and we can then make a search on your behalf from a large panel of UK lenders. You get an instant decision.
If we match you up against a lender or lenders, you can visit their site and go ahead with the loan application.
While there will be a fee involved, we cannot do all the hard work for nothing, this has to be weighed up against the fact that the process takes minutes and we can search with multiple lenders known to accept people with poor credit.
Searching for a loan with our help could mean the difference between you being paid funds from a loan into your bank account in less time than it would take you to find a loan yourself with a direct lender.
The Types of Loans Offered By Lenders
The loans that we work alongside are varied just as the panel of lenders themselves. They offer numerous loan options and types, some of the most competitive rates of interest and affordable loan options.
So what types of loans might people with poor credit ratings be able to get?
- Payday loans;
- Short term loans;
- Secured loans.
Whether you do decide to take the easy route and allow us to search online for a loan on your behalf or stick to your original plan and look for a loan yourself, all of the above may be options of loans that are suitable.
Lenders Offer £100 to £500 with Payday Loans
One type of loan offered by lenders to people with poor credit ratings is a payday loan. Payday loans generally offer between £100 and £500 and are most popular with people who find they have an unexpected financial outlay.
Those who know they have enough money to cover the outlay when they are paid but payday is still some time away apply for the loans. The loan can be taken out for as little as one month but spread out for up to three months if needed.
Repayments on payday loans are paid when you are paid. The lender will make a note of those paydays and take the repayment directly from your bank account. If you chose to repay in one payday the entire amount borrowed is taken back along with the interest that has accumulated over the 30 days. If you chose to spread out the cost of the loan over three paydays, the total cost of the loan, including interest is divided between the three paydays and you pay in instalments.
£500 to £1,000 with a Short Term Loan
You might consider a short-term loan to borrow between £500 and £1,000. The repayments might be spread for up to 12 months, which gives you ample time to repay if you are borrowing towards the top end of that scale.
Secured Loans for Upwards of £1,000
If you need to borrow more than £1,000 and spread the cost of borrowing out for many years, you might want to consider a secured loan.
Secured loans are not guarantor loans but they do need something secured against the amount of money you ask to borrow. This is due to the lender seeing you as being a big risk and so they want something in place they can fall back onto to recoup their money in the event you fail to repay the loan. Generally, lenders ask you to secure a vehicle or property against the amount borrowed.
You might still want to look for a loan with a direct lender but you might have changed your mind after discovering the advantages and disadvantages and decide you would rather seek our help.
There are plenty of choices for loans for bad credit no guarantor no fees direct lender but there are many more advantages of allowing us to search for a loan on your behalf. Of course, in the end, it is down to you and only you can make the decision.