It is not impossible for you to experience financial difficulty at least once in your life. With the current economic status of the United Kingdom, alongside the continuous increasing value of goods and cost of living, it’s not surprising that you would be tagged with a bad credit rating alongside a significant number of people. Sometimes, it is not even your fault, and it is just merely a matter of an employment or income-generating decision such as being and remaining to be self-employed. Yes, self-employment, along with other factors such as missing credit card bills, loan repayments, or mortgage fees payments, contribute to a bad credit rating. When this happens, it will be harder for you to apply for a loan from banks and financial institutions that would be able to help in your bad financial situation. Loans for people with bad credit are not impossible to come by, especially if you know the proper channels to go through, such as with TFS Loans.
Securing a Loan with Bad Credit
People who have bad credit and need to loan money are often faced with extremely high-interest rates and really bad payment schemes that would only leave them with greater financial difficulty than they were originally faced with. For example, a last resort for quick money for people with a bad credit rating would be to get payday loans. These are small valued loans which are short term. So if you are left with no money to pay for your loan by the next payday, you would already be faced with higher interest rates compared to the already crazy amount of interest you would have initially needed to pay for. Because of this set-up, some people end up paying up thousands of increase in interest percentage per loan. Crazy, right? With bad credit loans at TFS Loans, you would not be faced with interest rates that you would not be able to afford, and you would not be given a payment scheme that you would not be able to pay off. It is simple, easy, and TFS would never take advantage of your current financial situation to put a high price tag on the loan you would be getting.
Easy Payment Terms
If you opt to get a payday loan of £1,000 in value, you would typically have until the next payday or up to a month to pay off the loan. With the short repayment term, you would still be faced with a high-interest rate that ranges on average from 50-400% representative APR, and it could rise up to 1,000% or 2,000% if you happen to fail in paying off your loan within the specified duration. When you get a bad credit loan of the same value from TFS Loans, you have the flexibility to pay off your loan in as short as 12, 18, 24, or 30 months, or as long as 36 months. The representative APR that would be given to you would rely solely on the value of your loan, so regardless of how long or how quick you would pay off your loan, you would still get a 69.9% representative APR for a £1,000 loan. The representative APR would be lowered when you get higher valued loans. The advantage that you would get by paying off your loan in a much shorter duration is that you would not pay it off at a higher value. For example, paying off a £1,000 loan within only 12 months mean you would only have to pay £317.36 in interest, compared to paying it off within 36 months and paying £1,042.64 more than your loan value.
Securing a loan with TFS Loans means that you would be able to improve your credit rating instantly. The reason why you would be able to get a loan even with your bad credit rating is their loaning design scheme is through guarantors. Guarantor loans mean that you can apply for a loan with a trusted guarantor who has a good credit rating. A guarantor who owns a home would give you better chances of loaning higher amounts of more than £10,000 or a maximum of £15,000. You would still be the one responsible for paying off your loan. Your guarantor would only be there to guarantee TFS Loans that in case of a circumstance wherein you would not be able to pay for your monthly repayments, your guarantor would be the one to pay it off. Then, it would just be an agreement or a discussion between you and your guarantor on how you would pay off your outstanding balance from him or her. So in essence, it would mean that you would not be missing any monthly repayments and in effect, would leave you with an improved credit rating at the end of the loan duration.