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Life is full of uncertainties that come up without a prior notice. Even though you are financially sound, it is hard to believe that you will never fall short of finances to meet all of your needs. Financial crisis can trouble you anytime and the situation exacerbates when you encounter emergencies. Savings play a paramount role when you face tough time. However, it is not feasible to have enough money set aside all the time. You seek short term borrowings from direct lenders, but making the right choice seems a tough row to how. Well, the best option is 12 month loans for bad credit people with no guarantor from direct lenders. These loans are given for a period of one year, which allows you to pay your loan in instalments. They are also treated like a payday loan as the instalment is debited as you receive your next pay. Since you do not have to pay whole of the debt in one go, you do not feel burdened. Why are these loans worthwhile? Undoubtedly, these loans are worth it. You can meet any of your financial needs with such loans. Every month you will pay a fixed amount of instalment and therefore there is no risk of being caught in debt spiral. You can have funds disbursed within the same day. You do not need to have a good credit report, guarantor or collateral for the approval. The cost of these borrowings The credit limit for yearly loans varies from £500 to £5000 depending on a lender. Since these loans generally focus on borrowers with a bad credit record, they carry a high rate of interest. However, if you can prove your credibility by other means or you have a good credit score, you can negotiate the interest rate with your lender. Make sure that the loan agreement has no clause of upfront or hidden fees. Golden rules to follow You can stay relaxed with such loans, as you have to repay the loan in 12 monthly instalments. However, you still need to carefully decide on the amount before you apply. Make sure you owe what you can pay to avoid being caught off the wrong foot. Ask your lender if they provide you with a prepayment clause. This will help you quickly reimburse the loan. The quicker you pay back the loan, the better. Try to avoid late payments as they attract huge penalties, which will brutally affect your funds. If you fail to pay interest and penalties, you will be tempted to go for either a rollover or take a new loan. The rule of thumb says that you cut down on your expenses to ensure that you have enough to repay the debt on time. Use funds only for your emergency needs. Some borrowers invest the amount in any business and stock market. This is not a wise move because chances are your investment does not bring you any profit and it will be difficult to repay every instalment. If you want to invest in your business, you should take short term business loans. The bottom line 12 month loans are a better option than lump sum payday loans as your whole debt is paid back in equal instalments. To be certain about your repaying capacity, you should skimp on your spending. As long as you are able to manage your funds, you will be able to repay your debt. Read Also:-Be a Smart Borrower and Shake off Your Worries
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AuthorLondon Loan Bank Archives
March 2019
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