One of the best parts of residing in the United Kingdom is the financial support and ease of availability of credit for all alike. Whether you are a student in the UK University or the one who has migrated to earn bread, or a Brit by Birth you can avail short term loans from several sources without making a hole in your pocket.
Short term loans are basically instalment loans raised for a few weeks to 52 weeks according to your requirements. Whether you need urgent cash for temporary financial glitches or to build assets or shop around, you can raise swift short term personal loans in the UK for each of the purposes despite your social and financial status.
Many times, people use short-term loans to pay for their high-cost credit card bills. Not to mention, loans for celebration and other casual purposes such as travel and vacation are also available. For example, You can use Holiday Loans in the UK and plan your next vacation.
Your credit worth and the purpose of loan collectively decide the rate of interest you would be charged. As a borrower, however, you should be equipped with the best information regarding the ways to raise hassle free and swift loans at a low-interest rate.
Steps to avail short-term loans in the UK with Good, Bad or No History
1. Define the purpose of the loan: First of all, you need to know the purpose of the loan. Defining the purpose of loan can help you avail better terms and rate of interest and APR%. You can always use a short-term personal loan as an all-purpose loan.
For example, the same lender can offer you different rate when you apply for wedding loans in the UK or personal loans for a wedding, business or home repair. Use the cheapest offer to fund your expenses.
2. Know the amount you need: After defining the purpose of the loan, calculate the amount you want to borrow. A debt should be raised for a limited amount only. Irrespective of the offer being made by the lender, advance only for the amount you want funds for. Generally, fatter loans are offered at a low rate. But go for short-term small loans if that is your requirement.
3. Have a repayment plan: The amount you would like to choose should also be calculated after deducting your current instalments from your income. Only net income should be considered to get to the perspective instalment for the next loan.
4. Study your credit information report: Pull out your free credit report and know your credit score. Your credit score defines your credit worth. The better is your Experian or Equifax score, the better would be your chances to avail a loan on your own terms.
The major factors that affect your loan application are your previous credit history, your income and job stability, besides the current debt to income ratio. Studying your CIR helps you know if the lender would accept your application or not. The rejection of your loan application hurts your credit score and thus you should ensure that there are no denials on your plate.
5. Contact a broker: After studying your report, if you find less than perfect credit score, contact a broker to do the further analysis of your loan profile. Based on your loan requirement, he would guide you on the amount you should raise. He would search the market for the safe and cheap loans matching your requirements.
Whether you have a good, bad or no history using a step by step process would ensure that you seal an affordable loan. An affordable loan ensures the repayment and thus the credit improvement with the maturity of loan advanced.