A recent study conducted by the Financial Conduct Authority and published by the Guardian revealed that 4.1 million UK residents are facing serious financial problems. The study concluded that half of the UK population is financially vulnerable with the most affected group being 25- to 34-year-olds. BBC, in a recent report, also showed how most UK residents depend on a wide variety of debts to support their households. In short, loans are part of our life.
With more debts, comes the risk of accidentally missing on a payment or even maxing out your credit card in desperation. One of the immediate consequences that such could cause is a lower credit score. The low credit rating jeopardizes your access to most traditional loan facilities. Does that mean you cannot get financial support when in need of urgent cash? Fortunately, no.
Most direct lenders nowadays offer short term loans to people with bad credit. They use alternative methods, other than checking your credit score, to evaluate your creditworthiness. Most of their loans are quick and flexible. Surely they present a great alternative to solving your financial difficulties.
The Importance of Credit Checks and Guarantors
Credit checks are a norm before you get approved for a loan from a traditional lender. The financial institutions, like banks, check your credit rating to know how likely you are to repay the loan. If your credit score is high, 800 and above, they rarely reject your application. However, if your credit score is 650 or below, which is classified as bad and poor, they may easily reject your loan request.
All hope is not lost even when you have bad credit but in need of a traditional loan. The next best alternative you could seek is to get a guarantor. Guarantors cosign the loan agreeing to assume your liability should you be unable to repay the money you are loaned. The most obvious problem with this solution is that only a few people are willing to take such a risk. Even when you get a guarantor, it might take a lot of time to get their documents. Precious time which you may not have when in need of cash urgently.
The Challenges of Accessing Loans from Institutional Lenders
You no longer have to go through the rigorous process of applying for traditional loans. While they present a great opportunity to get financial backing for a longer term, they have numerous shortcomings. Some of their main drawbacks include:
- Long waiting periods
- Lots of documents needed
- Guarantors or collaterals are a must in some instances
- High rejection potential as credit score is a major evaluation factor
- You might have to travel to the financial institution physically to apply
- It might be difficult to get flexible loan amounts
- Rigid repayment terms and schedules
Key Advantages of Loans for Bad Credit No guarantor No Fees
Loans for Bad credit no guarantor no fees are a great option when you need cash urgently. Some of the main advantages of these loans are:
- Quick because you can get approved in a few minutes or within the same business day
- No need to provide lots of documentation as with traditional loans
- You can get a loan even without a guarantor or collateral
- High approval rates because they rarely evaluate your credit score
- You can apply remotely
- You can get flexible amounts
- Manageable repayment schedules and terms
How Do You Access These Loans?
All you need to do is find a suitable lender and fill in your personal details and additional information via an end-to-end online process. You can get the loan without any hidden fees or costs. For you to be eligible, you must be a permanent UK resident, have a bank account and have attained 18 years of age.
Most lenders will consider your income status before lending you the money you need. This can mean your employment or any other source of income you have including a business or government benefits. You might have to pay higher interest rates as compared with traditional loans because the lender assumes more risk. Once you apply, it only takes a short time to get approved and your cash is wired to your bank thereafter.
How Do You Find The Right Lender?
There are numerous lenders of loans for bad credit no guarantor no fees and it might be difficult to choose the best amongst them. At Bonsai Finance, we specialize in helping you to access credible lenders at the comfort of your home. We also provide our clients with valuable personal finance guidance to help them find the right solution for their situation. Contact us today to learn more about what we can do for you.