The term ‘credit’ is a term that can cause nightmares for many people. A bad credit rating can limit your borrowing options. County Court Judgments (CCJs), defaulted payments and bankruptcy orders leave a stain against your name when trying to secure credit and this stain can prove very difficult to remove. Successfully applying for an unsecured personal loan has never been easy for anyone with a poor credit history or rating but the good news though is that more possibilities exist today than ever before. In the financial rebuilding phase currently being undertaken by lending No Credit Check Loansinstitutions throughout the UK, lenders are more closely enforcing loan requirements than ever before. However, if your credit score is not too low, there still are possibilities that can lead to personal loans for people with bad credit.
New Loan Innovations
The new possibilities which are currently available exist in the form of ‘no credit check loans’ and these come in a variety of different formats. A relatively new innovation in the financial world, guarantor loans are rapidly becoming one of the most popular variations of the no credit check loan and when used correctly, can help to play a key role in turning a poor credit rating into an improving one.
Unsecured No Credit Check Loan
Guarantor loans are a good option to consider for people who need to improve their credit rating or to get a positive credit score behind them. The applicant must be certain that they can afford to repay the loan to gain the benefits this loan provides and as with any type of loan, it can always prove to be beneficial to shop around for the best deals. One of the most frustrating aspects of having a poor credit rating is finding a way to improve it. Without the opportunity to demonstrate the ability to make repayments on time and in full, a poor credit rating will stay just that. This leads to the obvious question of ‘how can I do this if no-one will grant my loan application?’ Through the use of a guarantor loan, you will have the opportunity to rectify this situation.
- Improved Credit Rating: One of the primary benefits of a guarantor loan is that the borrower will receive the opportunity to demonstrate the ability to maintain a repayment schedule. If all the payments are made in full and on time, their credit rating will improve over time.
- Ability to borrow a large amount: If your guarantor has an exceptional credit score, you may be able to borrow loans of up to £12,000.
Therefore if you have a poor credit rating, you need not worry about your prospects of getting a loan. Look for a trusted guarantor and then consider applying for a guarantor loan as your primary option.
To find out more about no credit check loans and other loan options visit Solution Loans