Loans, loans everywhere! Small needs, big needs, for every need there is a loan. In the money driven world, where you have to keep working on your financial goals, loans play an unavoidable role. From buying a microwave to a home, the financial support is required on every aspect. But a long procedure stands between you and the funds, which makes the process bulky. In fact, many people feel so annoyed with the long procedures that they want to stay away from availing funds as much as possible. This sometimes makes them drop the idea to apply to the lender and search for alternatives that do not work always. Do you also have same mindset? Oh OOO….
Don’t you think there should be some change in the perception? After all, how something that helps on important occasions and during tough times in life, can be so frightening? Sometimes when even friends and family show inability to help, loans remain the only source of hope.
Recently, the known journalist and television presenter Martin Lewis said something about personal loans that apply to every other loan. – ‘Debt is like fire. Done well it’s a useful tool, done badly it burns.’ Source – https://bit.ly/2K0wHw2
Certainly, it tells about the aggressive nature of debts but why not pay attention on the positive side? Done well and it acts as a useful tool. After all, this fire turns destructive due to your own mismanagement of debts.
Every loan product has a use
The lenders have many choices to offer and all of them have some purpose to solve. According to the needs and financial capacity of the applicant, the loan responds through tenure, rate quote and obligatory demands.
Why not take some examples and know the aspects they serve? Better idea!
Doorstep loans – Oh, just look at this category! So convenient and so predictable and now with online platforms, more comfort is assured than before. Apply online, get approval decision online and the loan agent comes to your door to deliver the funds in cash. Those with any physical illness and those with no bank account have many reasons to leverage the doorstep funding. Many people in the UK rely on the doorstep financial services.
Guaranteed loans – This is great! You apply to the lender with a surety of approval on application. However, as the saying says – ‘There’s no such thing as a free lunch’ you have to prove the repayment capacity. Once the lender is convinced with the capacity of the applicant to pay the instalments, the approval comes easily. Another positive side is, unemployed can also apply for these loans but they have to present a guarantor. They have no current income and something needs to be there to ensure the timely repayments. Providing collateral is also fine but that should be equal to the value of the amount borrowed. This also helps borrow a big amount on lower rates as with backing of a second borrower or asset; it becomes easy for the lending company to take risk.
Bad credit loans – Unprecedented! As the emergence of new age lending market has taken place, bad credit people have reasons to smile. Do you also have poor credit rating? Then these loans can open the doors to financial relief.
- Bad Credit Funding Represents Specialised Lending That Aims To –
- Provide funds to help people in bad credit situation fight the money crisis.
- Help in improvement of credit score performance through customised deals that facilitate timely repayments. This in turn, brings a boost in the credit rating.
No guarantor loans – If you are out of funds and also time but need money in a small time then this is the solution. Procedures are hassle-free due to no obligation of a second borrower. Take funds on your own affordability, however, this comfort compensates through a little higher interest rate. But the deals are customised and do not let the instalments become much hefty. Same is the case with every online loan. Fast procedures, instant approval decision, timely fund disbursement. Time is precious and urgent needs are well served through only speedy options.
Long-term loans – This is a big category that includes a large number of products that serves personal purposes to business purposes. Secured loans and guarantor loans are the two major examples. The big financial decisions depend heavily on the long-term funding. Don’t forget the roof under which you live could be impossible to achieve without a home loan. Your business cannot grow without big investments and for that, money is the only fuel, which only business loans can provide.
The one common thing in all the above loans is they are available for bad credit borrowers. The bad credit loans are already focused for poor credit people only but rest too accept the applicants beyond credit score status.
Perhaps, the problem is in your perception that has become biased. If you fail to manage the debts, why to blame the loan product? In place of this conservative thinking, it is better to bring self-discipline in financial life.