A financial emergency is never contained within the limits of resources on-board, it would not be an emergency if it is. Such instances demand and need external support.
The flow of events in the current economy of Britain will bend your financial strategies to the extent of a break-down. After it, the string of your financial harmony breaks and falls apart.
So what do you do when an untimely expense comes up? Or when it becomes more difficult for you to cope with the daily expenses altogether, what do you do then???? You cry out for help. From the near ones, your friends and family or other credible resources that you think can support.
But why to seek help from these people and be indebted under these favours and help for the rest of your life? When external support systems are available and are capable of handling these specific situations and the scenarios you face.
An unsecured form of lending and borrowing is an answer to all your untimely needs. One of the most sought-after applications of this concept is a “12 Months Loan”. So today in this article, we’ll describe and discuss this product. From what to keep in mind before obtaining this loan, to your rights and responsibilities in the process and the process of choosing a right lender or a loan broker. We’ll look upon all these aspects of this product, and will try to bridge your existing knowledge to it.
“A 12 months loan is sufficed enough for your needs, it’s a resource right under your nose”
What to keep in mind before opting for a 12 months loan?
- Always Look for a Regulated Lender or a Loan Broker
Borrowing involves risk, big-time! For the one who is lending it and more for the one borrowing it. Gone are the days when you thought that all the risk is on the table of a lender and not a borrower. Borrowing money comes along with the “3 R’s” to bear these days: Rights, Responsibilities, and Risks.
Rights: You are entitled to various rights and ombudsman services when you seek a loan. Well, only if you borrow it from a regulated loan broker or lender. Without them in the picture, you’re just a fish in a pond with a crocodile along. No rules and rights can save you. Unregulated lenders and loan sharks would never show the real picture to you, it’s all behind the scenes. Their business model is based on your financial sufferings. And why to feed these cannibals when you can stay under the watchful shadow of the FCA, with a regulated credit source and more convenience in the process?
Responsibilities: It’s your responsibility to look out for regulated sources, awareness is your weapon in the war against financial fraud and discrepancies against you. An informed decision is never a bad bet, at least, you’d know what you have and what is coming next. On the other hand, a disclaimed decision is only refusing to handle these issues at hand. It’s like closing your eyes and not see it coming.
Risks: The risks involved are greater and graver in nature. When you seek a loan from an unregulated source, the risk factor increases. These unethical entities do not adhere to any regulations and are hence capable of damaging your stability to greater levels of discomfort. They would levy high-interest rates with time and there’s no one you can complain about these things to. Another risk is that they would leach out every single penny in the name of hidden fees and fines on such things. Precisely, they prove to be the financial nightmares you don’t wish to witness.
Therefore, always opt for an FCA regulated lender and think about the three “R’s” whenever you come across an unregulated opportunity.
- Never Borrow More Than your FinancialAppetite
What happens when you eat more than you need? You upset your tummy in return. So is the case with borrowing. When you take out more money than you need, you’re only taking up more issues to handle. This money brings in more liability on you, its repayment, substantial degree of credit score damage it can cause and trailing-debt-spirals are the most important consequences to keep in mind before borrowing these extra crumbs of bread. So assess your financial proximity and stay within its limits. Hence it is good to handle what you need and not what you want, i.e. more.
- Shop Around for Loans Extensively
Shopping around can be a pain altogether and while searching for loans, it’s even more than that. But only this can save you from the financial horrors in the future. Searching for a suitable loan is the right thing to do and the borrowed finances should fit right in your needs. Any misfits in this process can hamper your stability limitlessly. Unaccounted financial transactions are known to cause more damage than help. So when you have the time, put it to use. Shop around for the loan you need rigorously and you will find something apt to your purse’s limits. This loan would be of great help and would not become a liability in the future.
- Plan a Repayment Strategy First, Then Think of a Loan
Planning a repayment strategy is the most assuring step towards financial wisdom and stability. When you seek a loan without the means or intent to repay it, you’re only digging your own grave. A repayment strategy is like an insurance plan for your safety. Such an assessment of your finances maps the whole way down for you. You may deviate from this once or twice, but the overall results are profitable in the end. A repayment plan before obtaining a loan is suggested by the experts from across the world. It’s a cardinal need of this process, and it enables a person to handle these debts in a care-free and convenient manner.
Whom to Borrow a 12 months loan from?
Now that you know what to keep in mind and what to avoid before opting for it, let us discuss the ways and means of obtaining a 12 Months loan:
- 786 Loans as your Loan Broker:
Names like 786 Loans in the UK are excellent platforms for seeking financial brokerage for a 12 Months Loan. 786 Loans is an FCA regulated loan broker in the UK and with an online interface for its customers, it is capable of providing efficient facilitation of your borrowing needs. All you need to do is sign up for a 12 months loan with 786 Loans and just sit back and relax. This loan broker would run a soft credit check (it does not leave a footprint on your report) on your profile to ascertain eligibility and then it would search for relevant lenders you need (however a hard credit check is still put in place by the lender, before finalising the deal). Within a short span of research from their end, you will get a catalogue of loans to choose from. All that you have to do now is click and choose a suitable deal. Ta-da! Also, all this is free of cost and with “online Handling” and “process automation” in the picture, this process is easier with a loan broker along.
- Look into the list of FCA regulated lenders and brokers for more secure options of borrowing:
A list of all the FCA regulated lenders and brokers is available on the FCA website. This is a complete categorization of regulated names for borrowing or obtaining loan brokerage services. You can go through this list and process a loan from your end as well. However, when you seek a loan directly from a lender, it assesses your affordability primarily with a hard credit check, leaving a footprint even if you’re not seen eligible for it. This may hamper your chances for a loan in the future.
So in my opinion, a loan broker who runs a soft credit check to know your eligibility is a good option for obtaining a 12 months loan in the UK. Yet the decision is yours and you have the authority over your finances, so make an informed decision.