Importance of Bad Credit Loans for the British Borrowers

The growing demand for ‘bad credit loans’ at direct lending stores confirms that common British person is not comfortable in managing even the regular expenses. Speculations concerned to Brexit deal forced the UK currency to dive up to the lowest level of so far against Euro. The increasing fuel prices also triggered the inflation (June 2018) that placed additional financial pressure on the majority of UK households which were already financially tight. The consumer price index rate in June 2018 hit 2.5% after being 2.4% for three months. UK’ economy was the fastest growing economy from 2013 to 2016 while it became the slowest growing economy among the G7 nations in March 2018. Although the common British household is not involved in political and financial developments after Brexit deal the dependency upon bad credit loans has increased much.

UK’s Economy Drives New Trend of Borrowing from Direct Lender:

The significant drop in the property market was identified as the one among the major reasons for the slowdown. The pending residential debts continued mounting up and touched the figure £1,417.2 billion in 2018- 3.8% more than that in Q2 2017. The new lending was recorded to £66.7 billion in 2018; 6.4% more than 2017. There is significant6.9% increase in gross advances also during Q1 2018.

All the mainstream regular banks sensed the alarming financial situation and squeezed lending by making more strict policies for borrowers’ qualification; it resulted in 38.7% drop in unsecured loans from mainstream regular banks during Q1 2018; it is estimated to be the largest fall since 2007. The doors of mainstream regular banks are almost closed for the bad credit score people or for the borrowers with bad financial credentials; the only way left for the majority of British borrowers is to approach the direct lenders; as a result, all size direct lending agencies are experiencing the increased rush in 2018. Today, most bad credit history holding borrowers approach to direct lending agencies even without applying at their mainstream bank or alternative financial institutions. The attractive advertisements with powered with terms like no guarantor loans, no credit check loans, bad credit loans, guaranteed loans for unemployed, short-term Christmas loans etc encourage the employed, small business owners, unemployed, self-employed professionals etc to meet out their financial needs through lending from the private lender. No doubt, it is fast, transparent, flexible, supportive and hassle-free.

Related: Top Tips on Bad Credit Loans with No Guarantor, No Broker and No Fee

Understanding Bad Credit Unsecured Loans in Real Terms:

The bad credit score has become a hovering term for over the years; it troubles the majority of borrowers trying to get some fast cash for emergency expenses. As the festive season approaches, the importance of poor credit score like terms become more as the majority of lending agencies use such terms to serve their business interests more than to judge the credibility of borrowers. Although a majority of borrowers are well aware of these terms they come under the trap created by direct lending agencies and pay more than the reasonable. The growing numbers of people feeling the heat of high rated bad credit ‘personal loans’ are increasing fast; the only reason is – they don’t do homework before approaching the direct lending agencies.

The unsecured bad credit loans were introduced by online direct lenders with an intention to tap financial weak borrowers having a low credit score. Neither such borrowers have a guarantor nor have any asset to pledge. The bad credit unsecured loans involve high risk for the lender; still, these are provided to the most. Yes, it is still a profitable business.

Where You Stand For Borrowing With Bad Credit Score:

The higher credit score means you will get a better deal for lending. There are numbers of online agencies like Experian, Callcredit (Noddle) and Equifax etc that allow the individuals the check their credit score independently at free of cost. The excellent credit score range is 961-999; with this score, you can get the debt even form the mainstream regular banks but it is the rare the find trait in the UK at least nowadays. The credit score range 881-960 is considered ‘good’; here too you are comfortable to get better deals but with fewer options. According to statistics released by Experian, the average ‘good credit score’ is 757. The credit score range 0-279 is said ‘very poor’; it means you are more likely to pay high for any amount of loan with lots of chances for application denial.

How The Leaders Decide Credibility For Bad Credit Loan:

Lenders decide the credibility through different parameters in addition to credit score. Whatsoever credit score you calculate yourself, direct lenders have their own way to judge it or they pretend to have it. The key parameters considered to decide your credibility for unsecured bad credit loan are – monthly salary, a record of your regular bank, publicly-held information like CCJs / IVAs etc. The ratio of income and regular monthly expenses are also considered to judge the repayment capability. If you have returned the previous bad credit loan from a direct lending agency successfully, the chances of getting the better price deals to shine out. If you are in a good job with stability for a long, it is a good sign to get the best loan deal. By using smart tricks regularly for improving your credit score, you can brighten the prospects of a cheap loan.

Related: Unbeatable Advantages of Availing Bad Credit Loans from a Direct Lender

Approach For Bad Credit Loans Matters- Are You Ready?

Shortlisting 4-5 direct lenders with an online presence is not a tough task; you can compare their performances also by going through the online profile and listed loan products but your prime concern is the cost that you will pay up to the last. Your borrowing strategy may help you save considerably- keep it tracking these points:
• Deal only with top-ranking direct lenders
• Confirm FCA registration
• Minimize the loan amount
• Minimize the loan repayment period; short-term loans are cheaper
• Ask for no early payment charges and pay at the earliest
• Confirm for no processing and upfront fee
• Chose the leading agency dealing in a type of loan you need- like a payday loan, personal loan, unemployed loan, short-term Christmas loan etc.

Parting Note:

Getting bad credit loan in the UK from a FCA registered direct lending agency is a matter of minutes as the most of direct lending agencies offer instant decision same day loans tailored for specific needs but the total cost that you pay decides the comfort and feel that you have at the last; therefore, focus on cost saving by optimizing the needs.

Related: Very Bad Credit Loans – Beat your Poor Credit Score in 24 Hours