Money does play a pivotal role during the most difficult time in our lives. The lack of money during uncertain times may have a profound impact on our financial stature. And for some, it may create fear, anxiety and other health issues when we have limited financial resources to cope up with the emergency that has developed. With the rapid growth in the lending marketplace, traditional banking methods have been disrupted. Banks and lending institutions have redesigned their lending models and an emerging trend has been noticed where technology-enabled platforms are connecting borrowers to lenders. This has led some of the reputed banks of Britain to collaborate with creditors. With so much happening within a blink of an eye, we need resolutions within a snap. If we are financially unstable at some point, we need to access finance as quickly as possible as that’s when we search for “Quick Loans”.
This article aims to answer the following questions:
- What are Quick Loans?
- How to Find Quick Loans with Low APR?
- Is It Possible to Borrow a Quick Loan with a Bad Credit?
- How to Apply for the Best Quick Loan Online?
What are Quick Loans?
A quick loan indicates the nature of the financial product – that means how quickly a borrower will get the money in their bank account if the loan application is approved by the lender. In broader terms, it is an unsecured personal loan that offers you to borrow money without any collateral and repay it over several months. Individuals prefer these loans mostly during any emergency when they have exhausted all other options of borrowing. Using a credit card may prove to be expensive as the rate of interest charged on it is too high. Lenders and banking institutions have different criteria when it comes to lending money. Some may allow you to borrow £50, some may go up to £500 and there are others who also offers you to borrow up to £2,500. The repayment period has to be chosen by you according to your repayment capability and budget. The maximum length of such loans is 12 months.
How to Find Quick Loans with Low APR?
Emergencies need your immediate attention. Most of us do not have the luxury of time to research on the internet before borrowing. And this is where we fail to save our finances. You need to find a quick loan with low APR and for offering you a low rate of interest, lenders consider several factors that are listed below:
1. Credit Score
Your credit score is one of the most important factors that lenders will take into consideration while assessing your loan application. If they do not find any spots on your record, then the loan they will offer you will have a lower rate of interest. However, if they find your score to be low, they will offer you high-interest rate loans. This is known as risk-based pricing. By lending money to someone who has a record of defaulting in the past, the credit provider is taking a huge risk. Hence, they increase the rate of interest according to the credit score.
2. Use a Guarantor
When you use a co-signer for your loan application, the risk for the lender decreases. This leads them to lower the interest rates for the loan. A co-signor is the person who is responsible for the repayment of the loan if you fail to pay it off. The person must have an excellent credit report and he should have a regular source of income so that the lender can develop a trust on your guarantor.
Is It Possible to Borrow a Quick Loan with a Bad Credit Score?
Yes. There are lenders who assess your loan application on the basis of your credit score and turn down your application altogether. And there are also lenders who are willing to take on the risk by providing money to such individuals. You can apply for a quick loan with a bad credit score to the lenders after reviewing their eligibility criteria. The lender will offer you their quotes but please bear in mind that the rate of interest that you will be offered will be high as compared to standard loans. Therefore, borrow an amount that you can afford to repay so that you do not end up in a debt cycle affecting your credit score. Getting into a debt spiral also ruins your financial future.
How to Apply for the Best Quick Loan Online in the UK?
With the advent of the internet, everything has become quicker, faster, and easier. Find a lender or a loan broker who offer quick loans online in the UK and visit their website. Fill in the loan application form and submit it online. The lenders will conduct the checks that are necessary and mandatory by law to determine your creditworthiness. If they approve your loan application, you can see their quotes and offers within a few seconds on your screen. Go ahead with them only if you find the rate suitable and if you agree to all the Terms & Conditions of the lender. Rather than getting credit checked multiple times, apply to a loan broker and get credit checked once. In this way, you have the chance to protect and maintain your credit score – which is a major determinant of your loan application.
Do not forget to compare the rates of the loan from various lenders to find and apply for the best quick loan online. You can choose to deal with direct lenders for a quick loan or you can also take the help of a loan broker. A loan broker makes your job easier. All you have to do is tell them what is the amount that you need and for how long. The credit broker will find lenders for you and you can pick the one you are comfortable with.
To start your application, click here.