Do the economic conditions of common person in the UK are improving? The regular and total pay, including bonuses, increased 2.2% during the period from September 2016 - September 2017. The data seems soothing but if the average pay of UK worker is adjusted as per the increased living cost, it is fallen by 0.4%. So, from where will the expenses come to meet out the daily expenses, which are often left unattended because of shortage of funds? Would not this shortage of income and increasing living cost force the common person to miss the monthly installments of existing loans and in turn to get bad credit score? Better, you do not be the one from ever expanding community living with high stresses because of regular finance shortage and approach the top bad credit loans lenders.
The Concept of Bad Credit Loans:
Do you know that 1 in 3 UK residents miss the best ever mortgage, credit card and loan deals just because of poor credit rating? Do you know that millions of Brits do not even realize the severity of damage done by multiple rejections? Do you know that almost one million young people of 18-34 years age have been rejected for lending more than 5 times?
Every time, a borrower applies for the loan at Govt. agency or mainstream bank, it is recorded into the credit history. If the lender sees that borrower has loans and has paid back successfully, the lender trusts the borrower and more likely lends the money at low interest rate. But, if the lending agency sees that multiple applications and rejections in credit history, it becomes cautious about lending even the small amount or charges higher interest rate because of judging the risk. The online direct lenders sensed this growing limitation of potential borrowers, and introduced the term – bad credit loans.
Get The Best From Poor Credit Loans:
Getting the best from a poor credit loan depends upon the knowledge you have about the direct lending agencies and the way of their working. In addition, the proper use of availed funds and the beneficial outcome decide the effective cost of debt that can be minimized further by reducing the repayment period. Would not you like a dip in the pond of FCA rules to know how to set the bad credit loan deal at the best?
There are two types of Annual Percentage Rate (APR) - Personal & Typical. The personal APR is straight forward. It is the percentage interest rate that you actually pay in personal circumstances like on credit cards. The typical APR is the advertised APR. It is the minimum percentage that the borrower will pay. According to the latest EU rules, the minimum APR is 51%; and, it depends upon the loan amount. The different online direct lenders offer personal loans at different APR; here, you can negotiate at your best. The short-term loans are made available at higher APR; for example, the unsecured payday loans are made available even at 200%-400% APR.
Good credit score draws low cost loan; the credit score around 740 is considered good. Different direct lenders use different credit score calculators so there may be little difference in between your calculations and lender’s calculation. The average UK loans recovery rate stands at 89 %.
The Bottom Lines:
Direct lending industry in the UK offers the borrowers extreme flexibility in choosing the loan type, loan amount, repayment period etc. The same day -instant decision- unsecured -bad credit loans offer much relief to borrowers while the high risk to lenders. Direct lenders are emerging fast as the preferred choice of employed, unemployed, first time job seekers, start up business owners and entrepreneurs etc.