Mr. Robert Cury is working in a reputed company in the UK and earning sufficient income for his family. It has been five years since he had started doing work and has never applied for the loan or asked money from the friends and relatives till yet. He believes in simple living and do not want to spend too much. His life journey has been smooth because he is quite capable of managing the expenses within his regular income.
‘Anything Can Happen To Anyone’. A common adage and very practical too. Mr. Robert is now looking for some financial help from folks, but it does not mean that he is unemployed right now. Actually, he requires funds for covering up the urgent expenses. Friends may not be in a condition to help him, as they have their own compulsions. What the Robert can do? A Loan? Well, the answer can be in both no or yes. No because making the repayments may become a matter of concern, and Yes because it remains the only option to re-stable the finances.
Mr. Robert Cury is not standing alone. Many of the UK locals are facing such financial nightmare. The above-mentioned situation can happen to anyone. At some point of life, a small financial issue can invite an awkward scenario with unwanted long-term effects. What to do at such circumstances? Instead of asking money from the acquaintances, searching for the cheap personal loans may open the doors for you.
Cheap Personal Loans – Perceptions & Purposes
Planning for a memorable trip across Europe? Or, Counting the days of tying into the nuptial knot? Or, Getting bored of old design of your home and have a wish of renovating it? All these requirements are the part and parcel of life and some of them are for once in a lifetime. Fulfilling them is your necessity or like a dream comes true. But hold on, please. Do you have enough money to implement your desires?
In the era of FinTech (FINANCE + TECHNOLOGY), these sorts of questions seem like no relevance. Personal loans are there to cover any purpose or any amount, whether you need £7,500 or £15,000. No matter, if your desired loan tenure is 3 years or 5 years, plenty of deals are available on the loans. Choose any of them and just continue with the plans for making your life better.
Some other purposes of applying for the personal loans in UK are-
Urgent Medical Expenses: If you have suffered a medical emergency or facing an expensive car repair, the loans can manage the cost.
Debt Consolidation: If you have multiple credit card debts and want to clear them off on an instant, then these funding sources will bring solutions effectively.
How to Prepare Yourself to Apply for Personal Loans?
The market of personal loans may seem like an easy place to borrow money when the applicant is working somewhere and earning a monthly salary to cope with the repayments. Lenders have the wish to know the salary status of the borrowers for the purpose of funding their needs, accordingly. As a borrower, you MUST BE EMPLOYED while applying for the loans and it is the basic thing to follow. However, options are also there for the jobless individuals, but they often come with higher interest rates.
Apart from the income status, decide primarily in which way you will find yourself comfortable in applying for the loans, i.e. SECURED or UNSECURED. Explaining these terms is not necessary because everyone should know about them thanks to the digital world. But the main thing is your need at the moment. In case of small amount, opt for unsecured personal loans, otherwise put some collateral to apply in a secured way.
Now comes to the BAD CREDIT RATING. The market trend has been in the favour of those individuals, who possess a good credit rating and have shown sincerity while making the repayments. In fact, the approval on the loan applications is largely determined by the credit rating of the borrowers. (Just see the table in the side and analyse your credit score).
The lenders keep the APR low if the score is higher and vice versa. However, it largely depends upon the lender’s policies, but the general trend has been this. Few loan providers have been keen on helping the people with bad credit, but the APR in this case will be expensive.
Personal loans, due to their online version, have become a prompt and proper way to get money into your hands. And of course, you will face less requirement of paperwork and the general terms may also be flexible. Like Mr. Robert Cury, you are also curious to know the ways to apply for the loans successfully.
8 Unheard Ways To Achieve Cheap Personal Loans
You can’t get better time than now when the lenders are battling hard to stay firm in the growing competition at the marketplace. They have their own business interests, but the borrowers have the advantage in terms of competitive interest rates. But it does not mean that everything is in fine place. Know the tricks of availing the best deal and in case, you don’t know, just read through below:
- Decide the amount that you need to borrow
As the trend is going on, the personal loans can be applied for the maximum amount of £50,000. But do you really need that amount? If not then why you are planning to secure such huge amount? Have you forgotten that you have to repay it too? Sometimes, living in a reality is good. It would be better to decide the amount prior and try to apply for small personal loans.
- Generate skills for loan shopping
You must have great shopping skills. You used to analyse and compare the products before buying them. However, do you have loan shopping skills? Scratching your head? You should have skills to judge the marketplace and find out the right lender, providing loans on suitable deals.
- Look for the Cheapest Deal on Loans
Never lose focus from getting the cheapest deal on the personal loans. You have limited monthly income and you want funds to meet your small personal needs or the external expenses. Save your time in searching only for the relevant deals, not for those beyond to your necessity.
- Compare the interest rates
A wide research of the loan deals is imperative. And, it should include the interest rates. It is the most vital aspect of applying for the loans. The loan companies in UK earn millions of pounds every year from the interest charges and it has become their main source of income. Make sure you should not become the victim of expensive rates and your choice is finalised at low rate personal loans.
- Analyse your repayment capacity
Loan is indeed a vital tool to generate necessary funds, but making habit of it should not be done. This is important because in the end, you have to repay the borrowed sum and it is the general rule that everyone has to follow. Many people do not take the repayments seriously and later find themselves in trouble of bad credit scores.
- Use the loan calculator
The best way to analyse everything before opting for any loan is to use the loan calculator. It is available in the websites of the almost all the lenders. Put the amount that you need to borrow and then calculate the interest rates and the repayment terms.
- Keep PPI Option besides you
In case, you find the repayments tough to follow in the meantime, try to keep the option of Payment Protection Insurance (PPI) with you. It will help you to ensure the repayments in the condition when you are unable to repay due to sudden health issue or the unemployment. It is not necessary that you have to use it, but important to use during difficult times.
- Know your credit score
Never apply loans without knowing what your credit score is. Use the agencies that allow people to check their credit scores and then tell exactly the score to the lender. Many financial experts suggest that the borrowers should not hide their credit scores with their chosen lender because it may become difficult to build the trust factor.
Thus, before applying for the loans you should check that you know all the ways to secure the best personal loan in UK. Once you able to do that, ask the lender to share the loan quote and then move the proceedings.
Personal Loans Are Easier To Obtain
Many loans are offered for the special financial purposes such as car loans are used to buy a new car, student loans for submitting university fee, unemployed loans to cover up financial losses of the unemployment, and many more. On the other hand, the personal loans in UK can be utilised for any personal purposes such as holiday expenses, wedding costs, and purchasing a new car. These loans are suitable for both long term and short term lending options depending upon the secured or unsecured loan applications of the borrowers.
Applying for the loans require only few minutes from the borrowers. As said earlier, almost all the FinTech lenders use the online application method, which has certainly reduced the time and money of the borrowers. And now, they need only FEW steps to submit application for personal loans and this chart will explain them:
Which One is better Personal Loan or Payday Loan?
You have just fall ill and only two days justify to pay your rent. You are about to travel for an important meeting but your car suddenly brakes down. These scenarios may happen, but how will you get over to them? This is the reason why the payday loans are widely accepted all over the UK even if the borrower’s credit score is not in good condition. The growing requests for payday loans have put the pressure on the lenders, who are dealing in personal loans. But it does not mean that the efficiency of personal loans has reduced. Just see a short comparison between these most preferred loans in the UK:
- Personal loans are considered cheaper than the payday loans. The interest rates on the payday ones are generally higher because of the small amount and less obligations involved. People with good credit scores often prefer low rate personal loans, as they get acceptable interest rates.
- Payday loans have a slight advantage over the personal loans in terms of the instant approval. Borrowers can apply payday loans without any paperwork whereas the personal loans belong to formats that are more traditional. During the financial emergency, payday loans work best for the borrowers.
- Unlike personal loans, the payday loans are used for exact time rather repeated more often than not. The small personal loans can be applied more times if the borrowers possess the right credit score.
- People prefer personal loans to the payday loans because they often get a chance to borrow large funds. They can secure the amount and enjoy less interest rate too. On the other hand, the payday loans are only for the small amount.
Analysing the Advantages and Disadvantages of Personal Loans
In the UK, there is a vast market of the personal loans and finding the right deal can be a tough task to complete. It has been found that many people could not take full advantage of the opportunity provided, largely because they have applied to the wrong lending place.
The need of hour is a proper analysis on the advantages and disadvantages of the loans. After all, your target is to get the best personal loan in UK. And, why you go anywhere to have that analysis, just go through below and get clear picture on whether the loans benefit you or not.
Personal loans may enable borrowers to secure funds more than they can do with their credit cards. It means loans are the better choice. The benefits like the fairly priced interest rates and adaptable repayment terms make the loans more preferable among many other choices. The unsecured nature gives more advantage in favour of the borrowers.
All seems to be good with the small personal loans but few things need to be considered, which are discussed here.
Now, you can accept that the cheap personal loans ensure a peace of mind is not far away from you.