More often than not, turning to your bank means that we need to get hold of quick cash. Perhaps to pay some urgent bills, maybe to help out in an emergency or possibly even to take advantage of a deal which will disappear quickly, without being able to access the balance quickly, a variety of problems could await.
With some lenders taking days to provide an answer to loan applications, we want to ensure that you can cut through the red tape to get the money that you need as quickly as possible.
In this article we outline 5 steps that you can follow to make sure that you know all you need to know before submitting your application.
Why is your credit report so important?
Banks and building societies are far more choosey these days about who they are prepared to lend to because they want to do all they can to ensure they get their money back.
To help minimise their risk, lenders take a number of factors into account when they consider an application, with the information contained in the credit report being right at the top of the list.
Your report contains a variety of information relating to your financial history, including your mortgage, cards and any other loans and red flags such as missed payments can result in an application being declined.
For more information relating to ratings and the importance of Credit Reference Agencies, please check out the following Guardian report titled – ‘How credit ratings agencies rule the world’:
How can I avoid a check?
It is worth remembering that whilst lenders always look after their own interests, they also do not want to lend money to anyone who cannot afford it. After all, lending money to someone and ultimately making their situation worse does not benefit anyone.
However, if you are concerned that your credit rating would see your application declined by your bank or building society and would rather skip a credit check, it is time to look elsewhere for your loan and we can help you look in the right direction.
Exploring the new market
To help borrowers who are still paying the price for past financial troubles, a new market has opened in the financial sector called the ‘sub-prime lending’ market.
This market contains a variety of different options which have been created for anyone who would fail to pass the stringent test implemented by High Street lenders.
Some of these options are not advisable, such as payday lending, whereas others can prove to be absolutely ideal and virtually risk free.
Offering a helping hand
Some of the standard financial products which are available can take a virtual eternity to obtain. This can be both annoying and frustrating in equal measure and can result in problems if you need the cash quickly.
One of the major benefits of this new market is the fact that many of the loans are often available within just a few hours of the application being granted.
To help ensure you are fully prepared before contacting a lender, we have drawn up a 5 step guide to help you along the way.
- Step 1 – Do your maths! – The very first thing that you need to do involves a little bit of maths. How much disposable income do you have available? How much do you need to borrow? Will the loan free up any more cash or leave you with less cash each month? Without knowing the answer to these questions, you are not prepared to contact a lender.
- Step 2 – Find out your credit rating – Without knowing your rating, you are highly unlikely to know which options are available for you. Using the UK’s only multi-agency report company Checkmyfile will help you to get the most accurate assessment of your current rating.
- Step 3 – Assess your options – Why submit a single application when you can submit many in one go? With sites such as our own, you will never need to put all of your eggs in one basket again. Use our single application form to make submissions to many of the UK’s top lenders.
- Step 4 – Thinking of loans with a guarantor? Before exploring this option, make sure that you have agreed everything with your potential guarantor before contacting your lender. This will help to speed up the process.
- Step 5 – Decide if you are prepared to offer security – Using your property as surety can open up a number of cheaper options. However, this is a risky option and is not advised.
Getting the RIGHT rating
There can be little doubt that your recent financial history will play a pivotal role in the outcome of your application. It is therefore always important to keep an eye on this information.
By clicking on the following link, you can visit Checkmyfile which offers you the opportunity to view your multi-agency report which will provide you with all the information that you need.
Finding the cheapest option
Don’t be fooled into thinking payday lending are the only option for borrowing money if you have past financial indiscretions.
Personal loans with no credit check are available in many forms, with a loan with a guarantor ranking right at the top. With benefits including speed, online applications and flexible repayments, they can be as much as 10 times cheaper than payday lending.
If you would like to look into a benefits of this type of product please see our calculator.