A Borrower?s Checklist for Bad Credit Loan

Posted by Jemma Madison on September 11th, 2017

When you have a poor credit report and struggling with extensive debts and liability, seeking bad credit loans is ought to become the order of the day. However, haste in financial matters can come out to be a total waste. You need to have patience and follow a step by step plan.

With the bad credit score, popular lenders would not be interesting in extending loans to you. So you would need to contact private firms for the matter. When you go for online loan brokers for bad credit loans, you can expect swift advice and that too free of cost.

In order to seek a loan advice from brokers, all you need to do is fill a form on their website. You would need to share your contact details and how much you want to borrow along the query. As your loan query would reach the broker, it would contact you and ask you more about your requirements. You can detail them on your specific loan needs and they will begin a personalised search. The broker would come up with best matching loans in no time. You can choose the one according to your ease. There is no obligation and you can make a fair decision.

But before you sign the deal, make sure you follow the checklist shared below:

1.    Assess your credit report: Before you contact a loan broker or firm for the deal it is important that you pull out your free credit report and assess your credit health. This would actually help you know true nature of your credit situation.

2.    How much you want to borrow? You should have a clear estimate on how much you want to borrow. A debt is a debt and thus should be raised carefully.

3.    The credentials of a finance company. It is important to check the credentials of the company you are going to deal with. If you contact a loan broker, ensure that it is approved by FCA. The authorised companies have details of their license on their website.

4.    Beware of loan sharks. Many lenders claim to be legitimate lenders but offer no credit check loans for people with bad credit history. You need to be really careful as it is illegal to offer loan without a credit check. A legitimate firm would not indulge in fake promises. At the most, the company can ensure a soft credit check. Going with no credit check loans is just not recommended.

5.    Before signing the loan agreement make sure you have a repayment plan to close the loan. Whether you have too many loans or inadequate funds, raising a loan without a repayment plan is a financial suicide. You should have a proper repayment plan before availing a loan.

6.    When your credit history is bad and you seek special loans such as no guarantor loans, it is important to understand the pros and cons of the deal. Ensure that monthly repayment is affordable.

7.    Have a budget. You need to have a strict budget to cut down all the expenses. You can also begin to save in your day to day expenses.

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Jemma Madison

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Jemma Madison
Joined: September 11th, 2017
Articles Posted: 6

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