Consider being broke and stuck with the need of money for one of these situations:
- Paying hospitalisation expenses
- Purchasing medicines
- Paying rent for the month
- Clearing credit card bill
- Paying instalment for car or student loan
- Applying to college
- Repairing car or essential appliance
- Purchasing emergency equipment
- Fixing home
Where do you start digging? What is your resort for financial hardships?
- Bank Account Balance
- Mutual Funds
- Bank Loans
Is that all? Who else do you rely on when you need funds? Is there anyone else to make it to the list? If you cannot think of anything, you are oblivious to a very important option that you have.
What happens when your savings or bank balance get exhausted? Will your family and friends be willing to lend you money out of their pockets knowing your financial status? Money has been known to create rifts between dwelling relationships. People tend to stay away from involving money with relations.
Welcome, unsecured loans.
Direct lenders have a well established FinTech industry online, that enables you to get immediate funds right into your bank account. Online loans are faster than bank loans and involve minimal to no documentation. Not just that, for all the reasons banks reject loan applications, direct lenders design customised loans just for those rejected applications.
Think about it. Which are the main reasons quoted by the banks for not approving loan applications? The major points would be bad credit, no guarantor, insufficient security or low income stability. Basically reliability of a person is what banks count on when taking loan approval decisions.
The 5 Minute factor.
Once you find a reliable lender online, you proceed with calculating your affordability. An online calculator present on the website of the lender can help you do that. Once you know what amount you need and would be able to easily pay back within a certain period of time, you can click on apply.
The whole application form does not take more than 5 minutes of your time. The undemanding application can be completed in the blink of an eye. All you do is click on submit after that. The form just includes some of your basic personal details and little financial information.
There is a short process time and funds are credited into your bank account within 24 hours since you clicked on the apply button.
Firstly, you would not be able to borrow small amounts of money from a bank. The loans that you get online can be as small as £100, and as big as £15,000. On borrowing only what you need, you save on paying huge interest over the amount you did not require in the first place.
Secondly, there are no valuation or application charges when you apply for a loan online. You do not pay any hidden or additional costs.
Speed is not the only advantage of online unsecured loans. The other highlights include the custom designed deals offered to different types of borrowers.
- Applicants with Bad Credit
The direct lenders understand that the credit score of a person does not define his character. Online loans for bad credit were designed for people with a stable income source to repay a loan but a poor credit rating. This came as a big relief to the applicants who had no source of borrowing money during emergencies.
A not so good credit history is made over a period of time, and it takes even more time to build it. Unless borrowings are repaid in a regular fashion, one cannot take his rating up. Direct lenders have been a blessing to the bad credit score population in many senses.
- Applicants with No Guarantor
Banks are adamant on securing the money before they give it. A collateral or guarantor ensures the bank that their money is safe and secured. The online lenders trust you a little more. They offer guaranteed payday loans without asking you for any type of security.
Your stable income is enough for them to consider you reliable. However they do incorporate the higher risk in higher interest rates of their loans. But what are a few pounds really when you get to move forward from the current financial atrocities of your life?
Just five minutes of your time can be highly beneficial for your pocket. Knowledge is power, and an oblivious person always loses on opportunity cost. It is always to your advantage to know about every option available at your disposal. And this is not just to know which is better, but also to know why something is not good for you.