How to get loans with bad credit with no guarantor

Bad credit can affect all areas of your life including your ability to get accommodation on rent and a decent job. This is because nowadays prospective employers and landlords also check your credit score before providing a home or a job. However, the area that bad credit most affects is your ability to get credit of any kind.

Traditional banks and lenders simply refuse to give you a loan if you have bad credit. But if you approach a good loan broker they are usually associated with many specialist lenders who don’t take only your credit score into consideration before providing a loan. Instead they take other things like your current financial status and ability to repay the loan into account.

As long as you are currently in a position to repay the loan in time then they have no problem in providing you a loan. However, you need to bear in mind that loans for bad credit are high risk loans for the lender. They make up for the higher risk by charging you a higher rate of interest. As a result the bad credit loans are more expensive and hence you should take such loans only if it is absolutely necessary.

Homeowner loans as an option

If you have bad credit then rather than taking unsecured loans it is a better idea to opt for low cost homeowner loans. These loans are given against the equity that you hold in your home and the amount of loans is decided by the lenders based on the amount of equity that you hold in your home.

It is a good idea to calculate properly the amount of loans that you can repay easily. This may be slightly difficult for the layman, but the loan brokers have knowledgeable and skillful loan advisers in their employ. These loan advisers will analyse your financial situation and suggest the amount of loan that is feasible for you.

Why you should opt for loan brokers?

The best part about dealing with loan brokers for unsecured bad credit loans or any other kind of loans is that you are protected from loan sharks and other unscrupulous elements. This is because the loan brokers thoroughly check the background of the lenders that they get associated with.

They check whether the lenders follow the rules and guidelines of the FCA and if their work ethics are above board. At the same time, you get a much wider variety of loan products when you deal with loan brokers. This is because they are associated with many different specialist lenders who have different loan products.

This way it is possible to get the exact loan product that suits your requirements. What’s more some of the lenders associated with the loan brokers also provide tailor made loans for their borrowers. These loans are designed according to your requirement and this makes their repayment easy and hassle free.

Then again the process of application with loan brokers is also easy and fast. All you have to do is apply for the loan on their website and wait for about half an hour for approval. The loan money is transferred to your account on the same day or the day after. These are the reasons that loan brokers are becoming very popular in the UK.