Taking loan seems the most feasible solution to meet out the emergency expenses. The experience of taking debt depends upon the source, process, terms and repayment conditions. Most of the time, the borrower thinks only about the easiest way to arrange the required funds at the earliest but it often leads to bad experience at later stage. The numbers of people having bad credit score are considerable high in the UK; therefore, all the leading lenders offer the variety of loans for bad credit no guarantor.
Bad Credit No Guarantor Loans - The Real Picture:
The mainstream banks are the commonly preferred largest lenders. These are trusted for lending at least interest rate but qualifying for bad credit no guarantor loan is the biggest hurdle; the application rejection rate is more than the 75%. Rising from £1,518.5bn in 2012 to £1,630.1bn in 2017, the UK average debt for households mirrors the picture of UK residents’ economy. The 7% debt inflation in comparison to average UK wages increase during the same duration shows the reality of UK residents why they have bad credit score.
Unsecured debt in the UK has increased 19% during 2012-2017. The interest rate of all the credit cards are going up driving more and more people in mental stress and financial worries. If the debts are not cleared on the time, the debt amount increases very fast almost making the repayment a tough task like cracking a nut by lips. Rising living cost is also making it difficult to pay the monthly bills on the time. According to a ‘Compare the Market’ survey report 25% UK population is struggling to meet out even the regular expenses, while 62% population is worried about the existing personal debt. In such the circumstances, who will be bready to become the guarantor for your loan? Who in your relationships will be ready or able to help you financially? Here comes the role of online direct lenders who take risk of granting the loans for bad credit no guarantor.
Pros and Cons of Bad Credit No Guarantor Loans:
The average UK debt is about £8,000 per person; and it is going to increase with the footprints of Brexit cut off process. The UK people from the business and service communities rely heavily on direct lending agencies because of ease in borrowing that they never experience while dealing with mainstream banks. However, there are some advantages and disadvantages of bad credit loans that you need to know before applying for the fresh debt.
“I do not mind tossing & turning up at night to plan to manage an unexpected financial emergency,” will be your statement and feel if your loan application is turned down by the traditional lender. The solution to sleep at night with peace is to approach the direct lender online for the no guarantor bad credit loan, and get the money in your account by the morning. Fast cash disbursement is major attraction of bad credit no guarantor loans by direct lending agencies in the UK. By using the bad credit loan amount for paying the pending dues, you can improve the bad credit score. Paying the debt on time demonstrates that you manage the debt obligations with responsibility; it opens doors for future loaning at reduced interest rate. These loans are just like the personal loans but the repayment period may be up to 60 months giving you more time to repay with convenience. The dark side of ‘personal long-term loans bad credit no guarantor’ is that if you hit by anther financial crisis, it can worsen the situation beyond control.
The Parting Note:
The loans for bad credit no guarantor by direct lending agencies are the most dependable and practical solutions to get quick cash help in case of financial emergency. The ultimate experience of borrowing depends upon the strategy you implement for choosing the lender, the best price deal, and on the time repayment.