5 Mistakes Borrowers Make while Searching Quick Loans for Bad Credit

 Lauren Storm
  Mar 26, 2018

Quick loans no credit check uk

Be it wrong borrowing decisions in the past or incessant business losses, once financial broke you tend to accumulate debts with no control over your credit rating descend. Your capacity to borrow diminishes and so does your financial strength.
From personal, social to business, all aspects of life are hurt by poor credit score. Whatever be your needs, searching out quick loans no credit check UK would be a hassle if you keep applying through traditional methods of borrowing. A lot of borrowers hurt their scores further by repeating the same mistakes. Loan rejections can bleed your credit rating and thus you must be careful to not make the common borrowing blunders when searching for bad credit loans.

1. Directly contacting a lender

Contacting a lender directly could be a slow and risky process, particularly with bad credit profile. For, you can not apply to multiple lenders all along as it will raise multiple queries and hurt your credit worth. And waiting for one lender to reply before applying to another could be a very slow process indeed.

Instead you can consider contacting a regulated loan broker. They can help you locate loans by contacting to several lenders all along. And that too without making a footprint in your credit report!

Also, when you search for loans poor credit no guarantor, you are likely to get high cost deals. For, a lender would try to cover up the loan risk by charging more interest rate or levying some additional charges. But the loan approval is never guaranteed until the lender runs a credit check. Based on your merit, the lender would approve or disprove your application.

Another risk you run while directly dealing with lender is to check out the past credentials of lender. All these could be overwhelming concerns and can cause a lot of stress to the borrower.

2. Borrowing more than what you need

If you choose to borrow secured loans, you are likely to get more funding for your cause. Herein it is important to restrict the borrowing strictly up to the amount you need. With poor credit, you should never borrow more than what you require. It can turn into a hassle to manage repayments later on. Even small cash lapses can bring big troubles with poor credit health.

3. Not opting for ease of repayment

Many borrowers opt for short term loans keeping tight instalments for repayment. They base their repayment plans thoroughly on Savings. This could be a big mistake. For, you cannot predict future precisely. With smallest of emergencies you may find yourself in a soup. Thus it is important to opt for ease of repayment when you take loan for bad credit.

4. Not closing very expensive loans

Another common mistake is opting for new loan without closing previous expensive loans. Before applying for bad credit loan, it is important to close down loans with high interest rate. You can either consolidate expensive loans or refinance them. With poor credit rating, it is best to restructure your loan profile to make your monthly repayments affordable and manageable.

5. Not managing credit cards

Often times we accumulate more than required credit cards. The journey of credit cards usually begins with free offers. With time, the offer expires and we switch over to other cards. Many such cards often levy annual renewal charge. Though it may be a nominal amount but when you do not need the card any longer, it is a sheer wastage of funds.

During financially troubled days, you must make sure to minimize any such irrelevant expenses. Likewise a lot of times we roll over credit balance as we put repayment of credit card at last priority. It is simply because we have a choice to roll over credit balance. This credit roll out not only affects your score but it also attracts very high interest rate and late payment fee. So you should always watch out for such frivolous penalties on your credit health.

Remember credit is the power while the debt is not!

5 Mistakes Borrowers Make while Searching Quick Loans for Bad Credit

Lauren Storm

Lauren Storm is an expert personal finance blogger. She is writing online since 2013. Currently she is working on here Book on Short Term Loans for Millennials.

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