“With good basics, you’ll have endless options.”
Unsecured Personal Loans are rapidly growing and have become one of
the most popular forms of borrowing money in the United Kingdom. According to
the data published by the Bank
of England, consumer credit increased by £0.5 billion in March 2019.
Millions of Britons prefer to borrow money using this option as it offers
greater flexibility as compared to the standard lending options.
These
are also widely known as – High-cost Short-term Credit (HCSTC) and the
repayment is spread over 1 year. The rate of interest charged depends on the
borrower’s credit history and the amount of monthly earning. It may vary from
lender to lender and if you do not have a spotless credit history, there are
chances that the rate you’ll be offered will be on a higher side.
Many online lenders – who are
prominent names in the finance industry of the UK – are now offering these
products online to enhance accessibility. People do not have to face many
difficulties while borrowing and using the amount, even for the repayments.
Recent Emergence of Guarantor Loans
The city watchdog – the Financial
Conduct Authority has recently revealed that there has been a significant
rise in the number of borrowers taking a Guarantor loan. The sub-prime credit
companies have been issued a warning by the FCA who issue this high-cost
short-term credit. Estimates show that the balances have reached a staggering
£1 billion – more than doubled since the year 2016.
The guarantors are people who
co-sign a loan and are liable to repay the loan if the borrower fails to do so.
If the guarantor fails to make the repayments or refused to make them, The court will issue a letter of warning within 14 days. If the debt is not cleared
even after 14 days, the lender has the legal right to recover their amount.
All these things may turn into a
big financial nightmare if not handled responsibly. If you have poor credit and
you do not want to find a guarantor for your loan, then simply don’t. You may
easily find Loans for Bad Credit with No
Guarantor – that doesn’t require a co-signor. However, you have to make
timely repayments as failing to do so will severely damage your credit score.
And with a damaged credit history, your chances of borrowing money in the
future is also restricted.
Borrow responsibly!
Comparison of Annual Percentage Rate (APR)
It is not a surprise that a
personal loan cost Britons hundred of millions of pounds a year. With new and
revolutionary loan comparison websites entering into the online unsecured the lending industry of the UK, it has become much easier to compare unsecured
loans and find the best one available.
Shopping is always fun. Then why
do we turn down loan shopping and settle with an option that we are thrown by
the internet in the first place? A lot of loan
comparison websites that allow potential borrowers to get a personalized
soft quote for their loan on a real-time basis, without affecting their credit
scores. A hard credit check is mandatory by the FCA to assess the borrower’s
repayment affordability but getting a quote from different lenders without
affecting your ratings to compare your options easily will save you a lot of
time and money.
Compare wisely!
Precisely Speaking
It may take you some time to explore
all the lenders and credit brokers to find the best loan rate available.
However, imagine saving all that money and invest it into something that may
yield better returns. Explore your options and ensure to check the background
of the firm you’re dealing with before entering into any agreement.
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