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?
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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.
