Getting a loan you're a tenant is sometimes difficult enough as it is but when you have a poor credit history, you might be forgiven for thinking that it's just not worth even applying. That's a genuinely held belief amongst many tenants looking for unsecured loans but is this fear truly justified?
If you've tried and failed to get a loan from your bank, you're probably feeling a little shell-shocked and disappointed. You've been a customer of theirs for ages and now they've said they can't help you when you want to take out a loan with them. It's actually a more common situation than you might think. Don't despair however. Just because the bank doesn't want to help doesn't mean than nobody will help.
For a start, every financial lending institution targets a certain type of customer with their lending products. The 'big 5' banks are notorious for trying to attract the kind of customer that has never had any difficulty in raising finance in the conventional way before. If you have a few blemishes on your credit history from things like missed or late repayments or even CCJ's, these can affect your credit rating, leaving you outside the bank's lending criteria.
This is not the same however, for all lenders. In the same way that the banks target their ideal customer, there are many lenders out there who also target specific areas of the market and it's with these that you may have more success if you find yourself initially outside in the financial cold, so to speak.
Unsecured loans as the name suggests, are not guaranteed to be repaid in the event of a default by the borrower. Now don't get ideas that this means that you don't need to repay the loan you take out, the lender can still enforce a sale of some of your other property. No, it simply means that in the event of a default, the lender cannot force a sale of your home in order to have the outstanding monies returned to them.
Lenders will usually only offer what they feel you can realistically afford to repay in the first place and apply a level of risk that they will calculate from your credit file that will take the form of a specific interest rate that they will charge you on the money you borrow. They may even reduce the offer of the money that they are prepared to lend. They will look at your income and regular expenditure and work out whether the loan is feasible for you to repay which means that they are looking after your best interests as well as their own.
It is a fairly simple process to apply for unsecured loans. Just complete the enquiry form from an online broker and you may well have a decision in principle within a few minutes from a loan consultant. You will still need to complete and return a written credit agreement that they will send to you in the post together with a few other documents to assist the lender with your tenant loans application but if everything goes smoothly, then you could well have the money approved and available to you in a couple of weeks. Simple!
Source: http://www.feelgoodloans.co.uk
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