How To Get Approved For Loans Regardless Of Your Credit
As a result of the credit crunch the UK finance industry has evolved significantly in order to try to lend more money to more people
. This has brought a great many different products to the market place that are designed so that people with a bad credit history can still arrange the finance that they need. This article will explain all the different options that are open to you and give you an insight into how they work.
Guarantor Loans
A guarantor loan is loan that is taken out by the borrower but the payments are guaranteed by the guarantor. Loans are available up to 5000 GBP and for terms of up to 5 years. It will not matter how bad your credit record is so long as you can find a suitable guarantor. A suitable guarantor can be any UK homeowner with a good credit record and sufficient income to justify the loan repayments. This type of loan can be a great way of improving your credit record so long as you make sure you make regular repayments. They are pretty easy to apply for and can be paid out within 48 hours.
Logbook Loans
A logbook loan is a loan that is secured on your car logbook. No credit check is required and it does not matter about your credit history. To qualify you will need to be aged 18 or more and own your car outright (the car must be less than 10 years old usually), and have enough income to be able to repay the loan. The lender will value your car and make an offer as to how much they will lend to you. Once your loan is approved they will keep your logbook until the loan is repaid. If you fail to meet the repayments they can force the sale of your car. The interest rates that this type of loan attracts are usually higher than you would expect to pay for a personal loan.
Payday Loans
A payday loan is a short-term loan that is taken out until your next payday when it is repaid in full. They are available for loan amounts from 75 to 1500 GBP and can be taken out by people with a bad credit history. A credit check is not always carried out but some lenders will now carry out a soft search. To qualify you will need to be aged 18 or over and in full-time employment. You will also need a bank account with a debit card attached to it; your salary should also be paid into this account. The lenders usually charge a flat fee per 100 GBP borrowed.