How to get unsecured loans for poor credit without much hassle?

We all know that poor credit can make it difficult if not impossible for you  to get loans with the traditional banks and lenders. However, nowadays there are many specialist lenders who are not interested in your credit history and only concerned with your current ability to repay their loan. These specialist lenders easily provide unsecured loans for poor credit to people who cannot provide any collateral

The best way to approach these specialist lenders is through loan brokers. These loan brokers have tie-ups with several lenders and they are able to provide you the exact loan product that you require. In fact, many of the specialist lenders associated with these loan brokers are also ready to provide tailor made loans to people who have special requirements.

What are unsecured loans?

WARNING: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.

Unsecured loans are those loans which do not have any collateral offered against them. Usually property or some other valuable is provided at collateral against a loan which makes the loan cheaper. This means that if you provide collateral against a loan the rate of interest will be lower than an unsecured loan.

This is because in case you are unable to repay the loan the lender can confiscate the valuable offered as collateral and recover their money. However, some people do not have any such valuables to offer as collateral for the loan. For these people unsecured loans facilitated by loan brokers are the best option.

If you apply for unsecured loans through loan brokers then you can be assured that you will get the loan at reasonable rate of interest and comfortable terms and conditions. At the same time, if for some reason you are unable to pay a few instalments then the loan broker will act as an intermediary between you and the lender and help find a mutually agreeable solution.

This is very important because otherwise the lender will report the non-payment of EMI to the credit rating agencies and this will have a negative impact on your credit score. However, when the loan broker acts as intermediary and helps in finding a mutually agreeable solution then the lender does not report the non-payment or late payment of EMIs and this way your credit score remains unaffected.

No guarantor loans

Usually when you have bad credit then the lender will ask for a guarantor for a loan. A guarantor is a person with good credit score who signs an agreement to repay the loan if the borrower is unable to do so. However, you may not have some such person who is ready to vouch for you or may not want to discuss your financial matters with another person. In this situation loan brokers can also help you to get unsecured personal loans for bad credit with no guarantor.

This makes matters much easier for the borrower and there is no hassle of looking for a guarantor. The best part is that in spite of the fact that the lender is providing the loan to you with bad credit and without a guarantor, they do not charge an exorbitant rate of interest if you approach them through a good loan broker. This is the reason that loan brokers are becoming very popular in the UK.