Tag Archives: credit history
Unsecured Loans – finance for everybody
As the name implies, unsecured loans don’t require the borrower to pledge any of his assets like home as security against the loan amount borrowed. Instead, the loan is granted viewing the borrower’s credit history and his ability to repay the loan. These loans are also called signature loans or consumer loans. Unsecured loans are multiple loans that can be used for a plethora of purposes. Some of these are mentioned below
The following are the parameters on the basis of which a lender grants unsecured personal loans to the customers.
The credit history of the borrower – This is the most important criterion for judging a borrower. If the borrower has a number of defaults, arrears and miss payments in his credit history, his chances of securing an unsecured personal loan are low. He may, though, get a bad credit unsecured loan at high interest rate. If the credit score of the borrower is above 700 on the scale of 800, he may get an unsecured more comfortably because of his excellent credit record.
The DTI ratio of the borrower – DTI i.e. Debt to consolidation ratio reflects the affordability of the borrower. DTI = Debts/ Income of the borrower. If the DTI is greater than 3.6, the borrower has good chances of getting an unsecured loan.
So, the above cited reasons are the two most important factors that contribute in the lender’s decision in respect to the loan amount, loan tenure and APR to be charged. If the credit history of the borrower is bad but the DTI ratio is good, the borrower may get an unsecured loan. Better the credit score of the borrower, lower his annual percentage rate (APR).
The amount one can borrow as unsecured loans start from as little as £500 and can go up to £25,000. Because the borrower doesn’t secure the money by any collateral, lenders tend to limit the value of unsecured loans to £25,000. The repayment period may stretch from six months to 10 years.
No credit history loans-Take care of your inevitable cash crunches with ease
Many people fall in shortage of funds due to inadequate income and more financial expenses. Individual who stay on payday to payday often face financial complications and fall in mid month cash troubles. Moreover, availing the additional funds from external financial market with adverse credit status is quite difficult but no credit history loans avail you swift money despite of bad credits. This is the swift loan aid that avails you quick money in least possible time.
As its name says, no credit history loans are available to all without any credit verification process. Therefore, if you are carrying several bad factors in your credit account like insolvency, foreclosures, bankruptcy, arrears and so on, you are applicable. The applicant does not have to face any discrimination between the good or bad credit statuses.
To get the easy approval of loans with no credit history, the applicant should qualify from the mentioned below terms and conditions. These are as follows:
The applicant should be a permanent resident of UK.
He must attain the age of eighteen years or above.
Hold a bank account not more than 3 months old.
A regular employed earning at least £1000 per month.
Have good enough repayment ability.
Find this loan in secured as well as unsecured form. Secured from allow you to avail huge loan amount and provide you funds in the range from £25000 to £75000 till the repayment duration of 10 to 25 years. On the other hand, with unsecured from, no collateral is required and the money you need can be ranges from £1000 to £25000 till the time duration of 1 to 10 years. Do not delay more and cover up your funds by utilizing this loan aid for following purposes such as paying off previous debts, education fee, electricity bills, home renovation, bank overdrafts and so on.
To get a better and affordable deal of this loan, make a proper research of World Wide Web. Log in to the lenders website and fill the single online application form available on the lenders website. The money will send directly in your checking account within the least possible time, once you get the approval. Enjoy this hassle free loan aid without any complexity.