Are you constantly struggling with cash shortages every month? Are your total monthly expenses including household expenses, credit card bills, loan instalments have started to surpass your total inflows or monthly salary? Have your savings gone a null month on month in a bid to have a positive cash flow?
If the answer to any of these questions is in affirmative, chances are high that you are undergoing severe cash crunch for quite some time. However rather than suffering from financial crisis, you should take some steps to ease your condition. One of the best ways to meet financial breakdown is to apply for short-term loans.
Short term loans are easy to avail and provide instant access to additional funds during the turbulent times.These are essentially instalment loans and you can easily plan the loan repayment and build a good history. Many people indeed apply for short-term loans to improve their credit score or before applying for a bigger loan.
With a better credit score, your creditworthiness improves and lenders find your loan application attractive. You get into better position to negotiate for the better rate of interest and demand minimal processing charges for the loan.
Likewise, you can apply for short term loans for bad credit situation. Using short-term loans it is possible to improve the bad credit score. However, the major issue involved herein is to search for a lender who is willing to provide bad credit loans at affordable interest rates. Generally, lenders offer high rate to people with bad credit score.
Why lenders offer high-interest-rate despite FCA’s check?
The rate of interest is basically the percentage charged on the principal amount by the lender to cover the risk involved in the loan application. The poor credit score is indicative of the bad history of loan repayment or too much of credit in the holder’s account. So your application becomes risky with the poor score and the lender charges higher rate of interest.
The lender charges the higher rate of interest legally as they are bound to provide the lowest rate of interest as mentioned in their commercials to only 51 % of people. So they choose people with a good score for the minimum rate. Being a risky candidature, you get a higher rate of interest.
How to get a low rate on bad credit loan?
Anyone who is looking for special loans such as bad credit loans, short-term loans for unemployed people and more should follow certain steps to search for a loan to cater to their credit requirements.
They can either research themselves for the lenders who deal with bad credit loans or contact an FCA registered loan broker for the purpose. By contacting a loan broker you can raise multiple loan queries without making a footprint in your credit report.
The brokers are loan experts and they search for tailor-made loans for the borrowers in the market. Whether you seek no guarantor loans or want to refinance a high-cost loan or consolidate your debts, the brokers can help you get an affordable credit solution and take a strong footstep to improve your credit situation.