The people applying for loan in UK are increasing day by day. It might be intimidating to hear but guaranteed loans for bad credit in the UK are also available. It is form of unsecured loan that lenders take. Since, the risk factor is high so is the rate of interest. The lender has no right over your property or financial source of income. Such kind of personal loan helps you to fulfill your goals and aspirations in life such as buying a new car or purchasing a new house for yourself. Mistakes are committed by even wisest people, but such mistake shouldn’t set you back. People with no or negative credit rating avail such type of personal loan and fulfill their fiscal needs. It is one of the most risky loans for lenders. The lending period of such loan is of short period of time, say one year. Only FCA approved financial institutions can give such kind of loan to people. There are many companies that vouch for giving you loan with no guarantee but not all are legally eligible to provide you loan. It is advisable to check for reviews of the company before applying for it. Compare the interest rate of more than one company before applying.
How to improve your credit rating?
Your credit report card plays an important role when it comes to availing the loan. Many financial institutions give loan by checking the credit report of a person. Loan with bad credit is one golden opportunity to improve your credit score. Make sure to pay the installments timely. When you will make delay in paying installments it will make your credit rating set aback. Late payment also creates a burden on you to pay the extra penalty amount. Never use payday loan or any other kind of loan to repay your debts. This will create negative impression and your credit score will get affected. Do not apply for loan on regular basis; it may again set back your credit score.
Benefits of applying for this loan
Guaranteed loan with no credit gives you the opportunity to increase your credit score. When you will make timely payment of the loan, your credit rating will become positive. Since the loan gets quickly approved so you can meet your financial liabilities and emergency situation efficiently. Such type of loan does not create any encumbrance on your property or business so the liability of you will be limited.