The absence of guarantor and the presence of poor credit record are the perfect reasons to drag you in a stressful scenario.
You might have no clue why having a reliable guarantor in the veil of your friend can be quite fruitful. But, you may have an idea how an adverse credit score can negatively affect your financial life.
Obviously, you think that there is nothing excited about having a poor borrowing record. Your credit score is one of the major factors that mean a lot in the world of finance. However, it is not the end of the life of someone, who is struggling with bad credit issues.
Fortunately, the loans for bad credit people with no guarantor choice are easily accessible. Having a tag of poor credit borrower is no longer a curse for you now. But, you should bear in mind that you may experience issues in your way of accessing a loan when you have poor credit.
Here are major side effects that may bother you if you go for the loans:
You Will Be Stuck with Expensive Loan Product
Your adverse borrowing record will create a hurdle in accessing funding options offered by the traditional lenders. You cannot deny the fact that the banks want to lend only to those, who have maintained a clean borrowing record. But, no worries! This is exactly where lenders will come to your rescue. Private lenders may charge a bit high interest but you will indeed get the relief from financial chaos.
You Could Have Problematic Tenancy
You might have no clue about it. But, the lenders are not only ones that look at your credit score. In fact, the landlords also look into your credit file when they consider a person’s rental application. Even if you can attain very bad credit loans with no guarantor and no broker, the chances of rejection for renting an apartment are high. To avoid this hurdle, what you can do is to be honest and express yourself clearly to the landlords.
Your Loan Tenure Will Affect
Leading a life with a tag of bad credit holder is never easy. Bad credit affects not only your chances of acquiring funds or renting an apartment but it also affects your loan tenure. Of course, the lenders consider it risky to provide a long tenure loan in a bad credit situation. That is why you have no scope for expanding the loan tenure.
You Could Have Trouble Borrowing A Large Amount
If you decide to shop in an unsecured way, acquiring a large amount will be a problem. Obviously, the lenders avoid providing a large amount as you have already made defaults on repayments. But, you need not lose heart as you still can access 1000 pound loan despite bad credit and no guarantor. Plus, you have to pay less interest on small amount which is actually good for your savings.
Unless, you take a loan, getting rid of bad credit situations is not as easy as you think. To escape the bad credit conditions, it is good to take a small loan and pay it back on time. This way you can also prevent the side effects of having a poor borrowing record.