Whether it’s a home loan, a car loan, a student’s loan, payday loan or a simple personal loan, availing for a loan can be a tedious process most especially for the inexperienced. Some even seek the help of financial professionals and/or analysts to get a better chance at being granted a loan. The people who do such things can’t be put to blame though. Opting for professional help in getting a loan can make the process easier and will help you sleep better, but really, there’s no need for that. When in need of advice, feel free to run through the list below on what you need to do to get the best and cheapest possible loan for your intended purposes.
Am I qualified for a loan in the UK?
Like most countries, you need to be at the very least an eighteen (18) years old resident of the United Kingdom to be able to apply for a loan. Usually, you will need to already have an existing account with your lender or will be asked to make one if need be.
Certain criteria must be met by the borrower, such as: good credit history – this means no unsettled debt from other financial institutions – and a stable financial situation. Lenders mainly base the approval of your loan on those two factors. When they feel as if you are not capable of paying your dues on time – because of previously late or missed payment transactions – then there is indeed a greater chance that your application will be declined, or if not, higher interest will be charged to you.
How much will they lend me?
Lenders in the UK usually grant loans from ₤1,000.00 up to ₤25,000. But of course, how much you can loan will most definitely depend on your current financial stability and credit history. So, it is expected from the borrowers end to ask for a reasonable amount that he or she can afford to pay on time.
For how long can I borrow?
This is a factor that differs from one lender to another. The term and longevity of the loan can typically last from one to seven years. However, keep in mind that the longer the loan term is, the bigger the amount that you will have to pay. Your repayment will get lower and lower as the years pass by just as the interest rate will add up, ultimately leaving your dues bigger than it should be.
Basically, it all boils down to finding a loan that will fit your current financial situation best. You may even want to look for loan information from various lenders and several banks to ensure a loan that is just right for your financial capability. Learn to maximize your loaning capacity but at the same time, do not go too overboard. The last thing a reasonable borrower would want is a messy credit history and long years to be spent repaying a falsely calculated loan.
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