Things to Know before Availing Tenant Loans with Poor Rating

Posted by Jemma Madison on October 25th, 2017

Being a tenant is not same as being a homeowner. Your credit worth is low and so is your credit score. Not many lenders are willing to extend loans to you. However, the situation is not as grim as may appear if you contact a registered loan broker. A professional broking service can help you find a perfect match loan for your credit condition.

Here is a quick checklist of things to know before contacting a loan broker for tenant loans.

Contact a registered loan broker

Always contact an FCA authorised loan broker. For FCA is a financial watchdog in the UK. With a registered broker by your side, you could rest assured of dealing with a reliable lender. There is the least risk of getting duped by a loan shark.

Read Reviews

Contact with a broker who has past experience of searching tenant loans. Reading past reviews helps you know what should be expected of their service.

Know how much you want to borrow

With poor credit rating, as difficult could be finding a loan as could be repaying it. You need to put a check on your expenses. You need to clearly know how much you want to borrow. Always stay away from borrowing for more than what you require. For excessive borrowing would only add financial stress to your shoulders.

Instalment loans

It is important to plan the borrowing well in advance. Rather than going for payday loans, opt for instalment loans. A broker can help you find an affordable instalment loan. With easy instalments, it is easier to manage the loan and repay on time. With the successful repayment of the loan, you can build your credit worth in a short time.

Soft credit check

With a poor rating, it is important to protect your credit score at every step. You should ensure that only soft credit check is initiated on your loan application. When you contact a loan broker, they ensure soft checks.

A soft credit check is a credit check that is not recorded on your credit report. It protects your credit score.

Bad credit loans with Guarantor

Being a tenant, you do not have collateral to ease the loan terms. It is possible that you would want to bring a guarantor to get a low rate loan. But what to do when you have a tenant guarantor? There are some lenders who do provide loans with tenant guarantors. However reaching them directly could be a tall order. Pitching with a loan broker you can find a deal.

Manage your finances

Last but not the least, you should begin to manage your funds and save as much as possible. Whether you call it frugal living or budgeting, it is important to put a check on your expenses. You should refrain from any kind of impulsive buying. Always make shopping lists before spending your money. Delay your current spending and plan them for future. Only sustained efforts will help you improve your credit situation for good.