Need a loan quickly but have been let down by your credit rating?
There a number of great options which have been designed to cut through the application process for anyone who needs cash now.
Even better, regardless of your recent financial history, they may still be available to you!
With the available balance regularly available within minutes of submitting your application, let us help narrow the field by introducing the top 3 options currently available.
1. Logbook Loans
These offer the perfect option for anyone looking for a secured loan which does not put their home at risk.
Typically advertised with the promise of fast cash and no credit check, they are available on both the High Street and the internet in sums of between £500 and £50,000, depending on the value of your car.
How do they Work?
As opposed to offering your home as security against the balance of your loan, when you submit your application, your lender will ask you to hand over either the vehicle’s logbook or registration document, as proof of ownership.
You will then be asked to sign a legal agreement and a form called a ‘bill of sale’, which means that the lender will temporarily own your vehicle until the amount that you have borrowed has been repaid in full.
Once you have completed your repayments, the ownership of your vehicle will be transferred back into your name. However, if you fail to make all of the repayments, the lender will be quite within their rights to sell the vehicle and use the proceeds to recoup some of their losses.
Normally the agreed amount will be sent to you in the form of a cheque, which takes several days to clear. Some lenders offer a ‘fast cash’ service, but they may charge fees of up to 4% of the balance for this.
2. Text Loans
These are a fairly new innovation in the UK finance market and work by allowing the lender and the borrower to complete their application via text message.
Loans of up to £1000 repayable over 12 months are typically available and you can submit your application using either a smart phone or tablet. If accepted you will complete the loan agreement via text message.
Once you have verified your application via a text message, your lender will send the funds to your bank account with 24 hours.
3. Guaranteed Loans
These are the jewel in the ‘specialist loan crown’ and are by far the cheapest option available in the alternative market.
They are separated from many of their counterparts by the fact that they require the borrower to have a second person acting as a guarantor.
Typically lasting between 12 and 60 months, you will generally be able to borrow anywhere between £1,000 and £10,000 regardless of your recent financial history.
Family members and close friends are both popular choices to act in the role of guarantor.
Do you know you credit rating?
These ratings play a critical role in the application process for many loans. However until recently finding out a definitive score has proven to be more difficult than it should be.
Despite there being a number of CRAs (Credit Reference Agencies) in the UK from which you can obtain your report, they are all likely to come back to you with slightly different information.
For this reason, we strongly recommend visiting Checkmyfile to access the UK’s only multi-agency report to ensure that you obtain all of the relevant information.