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Fast UK Loans: No Credit Check Loans Availability?
No credit check loans can be perfect if you need immediate cash relief as they can be processed and released within 24 hours.
However, no credit check loans are not as accesible as they once were and the general state of the UK economy and the banking fiasco are the primary reason for this situation.
UK loans that do not require credit checks can be your best bet when you are seeking the most practical stopgap measure. No credit check loans in the UK are well matched for individuals whose credit ratings aren’t as good as they could be. Contrary to the negative information that we normally hear from media, financing companies that extend no credit check loans in the UK provide a value added service or bad credit loan when you need it most. That being said, it is important that one should not lose sight of the real essence of getting a no credit check loan in the UK. These types of loans can come to your financial aid when other types of fast loans can not.
Are no credit check loans an option for you?
If you have to bring in your car for repair but don’t have the extra money to spare then a no credit check loan maybe worth researching. If you are seeking no credit check loans mainly because of a poor credit rating, then it would be wise to approach with caution with loan applications.
Since, you maybe the type of borrower considered as high risk by lending companies, it would be proper for you to reconsider every application for no credit check loans as these would be costly in the long term.
As much as possible these loans must be resorted as a last resort or for extremely important reasons and emergency situations.
No credit check loans should never be used as to solve a long standing financial problem as this is would only exacerbate the problem even more; they might be able to deliver temporary relief but could give you more headaches in the long run. Always remember that these types of loan are used to provide relief for a short term shortfall of money.
However, it is essential that you act with utmost discretion when opting for no credit check loans.
Loans To Individuals and Average Interest Rates On Selected UK Household Loans
Source: http://www.ft.com/home/uk
Further Basic Information About No Credit Check Loans and Bad Credit Loans
People with bad credit sometimes panic when thinking about taking out a loan. Traditional lenders are very strict these days and they do not look favorably upon bad credit borrowers. Despite the current state of the economy, it is possible to find loans for bad credit consumers. Whether they are advertised as bad credit loans or no credit check loans, these short term loans are designed for people whose credit is not in good shape.
Types of No Credit Check Loans and Bad Credit Loans
Anyone with a credit card can get instant cash loans by taking out credit card cash advances. These are considered no credit check loans since the individual already went through the credit check process to get the card. Another way to get a payday advance is to take out a pay day loan. Consumers can find payday loans online and in stores that provide a small amount of cash over the short term.
Students often have little or no credit and some have bad credit due to other outstanding debts. Bad credit loans allow students to continue their education while repaying other debts. These bad credit student loans are offered through various financial institutions, including those that operate online.
For a business, there are bad credit business loans designed for companies just getting off the ground and those who have been operating for years but experienced financial issues that tarnished the credit rating.
Though it is difficult to find no credit check loans for home buying, there are bad credit loans for people interested in purchasing a home. Bad credit mortgage loans are not as easy to find since the financial crisis but some lenders do still offer them. Bad credit auto loans are also available and many of these are unsecured bad credit loans, requiring no collateral from the borrower. Car buyers may even be able to find secured no credit check loans for the purchase of a vehicle.
Interest Rates for Bad Credit Loans and No Credit Check Loans
When individuals have bad credit, they pay more for their cash loans. No credit check means the lender takes on more risk, therefore, the interest rates on no credit check loans are often much higher than for loans for people with good credit.
Therefore, consumers should think carefully before taking out bad credit loans. Whether these are short term loans or longer term bad credit student loans, bad credit home loans, bad credit personal loans, bad credit auto loans, or bad credit business loans, the monthly payment should be affordable throughout the term of the loan.
How Bad Credit Loans And No Credit Check Loans Affect Credit Ratings
In some cases, a credit check is required in order to approve applicants for bad credit personal loans. These lenders will probably also report loan payments to the major credit bureaus. Therefore, it is important for borrowers to make the required payments on time.
With no credit check loans, the credit rating is usually unaffected by a late payment because the situation is not reported to the credit bureaus. However, there are other consequences like penalty fees and increased interest rates. These loans with no credit check are for people with bad credit and are designed as last-resort financing.
Here are the benefits that one maybe able to get from no credit check fast loans:
- These fast loans are used to tide you over during transient financial shortfall. This is the reason why there are no credit check payday loans offered to fixed income earners.
- The processing of no credit check loans is simple and fast. You can receive the loan release within the same day that you file your application.
- This type of loan doesn’t set any restrictions in its usage. You can use the loan to buy your favorite electronic gadget or spend for the college education of your partner.
Here are the disadvantages that can be associated with no credit check fast loans:
- This type of emergency loans charge higher interest than the other types of loans. Lenders consider those who apply for these types of loans as high risk, thus the higher than normal interest rates.
- Borrowers can end up with escalating debts if you fail to make payments of this type of loans on time.
- Those who are on a very tight budget may find themselves in a serious debt problem in no time at all if one opts to get a non credit check loan without doing proper due dilligence.
Getting a Fast Loan Quickly…
When you need money, there is often no time to waste in coming up with it. Sure, you can get a part-time job to earn extra cash, but the income will not arrive in time. For those who place the expense on a credit card, interest accrues. Everyone else must leave the expense unpaid, which could result in late fees or even termination of service. In the winter, this could literally leave a person out in the cold.
Rather than toiling away at a night job and being bleary-eyed at work the next day, consider an alternative. Fast loans provide cash in a flash and are not difficult to obtain. Many do not involve a credit check, making them a perfect solution for individuals with poor credit. With these loans, small bills or emergency expenses can be paid, giving the borrower some financial breathing room.
Similar to no credit check loans, fast loans should only be used as a short-term solution to provide temporary financial relief. Using them to solve a large financial problem will only make that issue larger. The loan should be applied to the expense and repaid as soon as possible, not rolled to a subsequent term.
The goal is to rectify a one-time problem and move on with life, not create a small pile of debt that eventually grows into a mountain.
Everything Consumers Need To Know About Quick Loans
When people need money, they do not always have enough time to earn it. It can take a while to make the money needed to pay for a vehicle repair or replace an appliance. When the bank account balance is not sufficient, people must find quick loans to cover the expense. Instant approval loans are designed for borrowers who have no time to waste. Individuals get the money they need within hours and can use it to pay those expenses that cannot wait.
How To Apply For Quick Loans
Many lenders offer quick loans online, enabling people to get the money they need without leaving home. An Internet search for fast loans available in the UK will yield ample results. Consumers should compare the offers to find the loan with the lowest interest rate and most attractive repayment terms.
Quick payday loans are suitable for consumers who need only a small amount of money and can repay it within one or two weeks. People who need more cash should look for a larger personal loan with a longer repayment period to keep their monthly payments low.
Once the best quick cash loan is found, the individual must complete an online loan application. This form usually asks for personal, income, and banking information. Name, address, residency status, monthly earnings, and length of employment are common questions.
The application is submitted to the lender electronically and after application details are reviewed and verified, the lender issues its decision. This may take only minutes and with some quick loans, same day funding is provided to the designated bank account.
Bad Credit And Quick Loans Are Not Mutually Exclusive
For many providers of quick loans, bad credit is not an issue. They cater to people whose credit score prevents them from qualifying for High Street loans. Since credit-impaired borrowers are higher risk, the fast loans they are entitled to usually carry a higher interest rate than typical financing.
This is a small price to pay for a no credit check loan with lenient requirements and fast funding. Consumers with bad credit should be able to find either a long or short term loan designed for them.
The Difference Between Secured And Unsecured Quick Loans
When reviewing quick loans online, consumers will come across both secured and unsecured loans. A secured loan is guaranteed by an asset such as a home. If the borrower defaults on the loan, the lender can take possession of this asset and sell it to recoup the money that is owed. Taking a secured loan is a big risk, as an unexpected financial setback like a job layoff could make loan repayment unaffordable, resulting in the home being repossessed.
Unsecured loans are much better options, even if only a short term loan is needed. Borrowers will not have to worry about losing their home or other asset. Their written promise to repay the money is the only thing required to secure the loan. If it is not clear whether a loan is secured or unsecured, the individual should ask the lender, to avoid ending up in an undesirable financial situation.
Quick Loans Can Be Used For Any Purpose
Aside from being fast, one of the most attractive aspects of a quick cash loan is unrestricted use of the money. Many lenders do not even ask why the borrower needs the cash. Funds can be used for anything from a new oven to medical expenses. People can even use quick payday loans to cover utility bills until they receive their next paycheck. This prevents them from incurring late charges and eventual shut off of electricity or gas service.
Before applying for fast loans, consumers should calculate exactly how much money they need for all purposes. They can then save even more time by applying for a single loan that covers all expenses, rather than a separate loan for each purpose. Once they receive the money, they can divide it amongst the different expenses. Then they will be able to focus on repaying the quick cash loan.
Considerations Regarding Quick Loans
The ability to get quick loans online without stepping foot into a bank, even with poor credit, is very appealing. The money is provided quickly, making life easier for the borrower. However, there are several things to consider before completing an online application for a quick cash loan. These factors should be taken very seriously, as they can have a major impact on the financial future of the individual.
Quick payday loans feature a very high APR, as high as 3,000 percent or more. This may seem shocking but it is due to the risk involved and the short-term nature of the lending. On average, customers pay about £10 to £30 for every £100 they borrow.
This is more than a bank charges for a personal loan but if the borrower repays the money within the initial term, it may not be too painful on the wallet. The problem arises when people fail to repay their loan and must roll it over, incurring additional fees and charges.
Many people pay only the interest on a short term loan like this and roll the principal to a second term. This process may continue several times, resulting in the borrower paying four or more times the amount of the initial quick cash loan.
Financing that was once feasible to repay becomes a mountain of debt, leading some people into default and even bankruptcy. Similar issues can arise with a no credit check loan, due to its high interest rate, and even with longer-term quick personal loans.
Using Quick Loans Properly
Consumers should only request quick loans for money they need immediately. The cash should only be used for emergency expenses, not for holidays or to purchase big-ticket luxury items. As soon as the expense is paid, the borrower should begin focusing on repaying the personal loan, paying it off early if possible.
This approach helps the person avoid any negative consequences of this financing.
Avoid the Pitfalls of Fast Lending
As our website illustrates, too many borrowers fall victim to the allure of fast loans of the payday variety. Avoid becoming a member of this group because the effects can be very negative and last for years. Shop around for the lowest loans APR, borrow only the amount needed in the near term, and repay the loan as soon as possible.
Paying off the balance before the loan term ends reduces the amount of interest owed.
Comparison-shopping is essential because, like no credit check loans, fast loan interest rates are higher than rates associate with traditional financing. Borrowers with poor credit will pay even more than will those with higher credit scores.
This is another reason why these loans should be viewed as a last resort. Paying high loans APR is like throwing money out the window, something few people can afford to do these days.
Responsibility and Diligence Are Critical
Responsible borrowing is the key to using this financing successfully. Failing to repay the loan during the initial term results in compounded interest and sometimes even additional fees. Again, wasted money. Being diligent about repayment by consistently remitting the proper monthly installment on time is essential.
The loan will then be repaid within the initial term, leaving the borrower free of this debt.
When an emergency or a temporary issue results in a short-term cash flow problem, fast loans offer one solution. The funds can be used to pay for car repair, settle a medical bill, or catch up with regular monthly expenses. If the short-term financing issue develops into something long-lasting, another solution should be found.
This prevents this quick and convenient financing from becoming a burden.
Unauthorised Overdraft Or Payday Loan?
Tips On Improving Your Credit Rating…Secure That UK Loan
Credit providers look for various things when approving people for loans and other credit. Even if people do not have debt such as loans or credit card balances, their credit rating may not be very good. Credit providers want evidence that individuals can repay debt and manage a credit card.
1. Having no history in these areas provides lenders with no way to determine whether you are a good risk.
2. Every time a person applies for credit like credit cards, hire purchase agreements, personal loans, mortgages, mobile phone contracts, and overdrafts, this is recorded on the credit report. Successfully repaying these according to terms improves the credit rating. This makes it easier to secure credit in the future.
3. The easiest way to identify any credit issues is to review the credit report. Experian provides a one-time free credit report during a 30-day trial period. Individuals can also pay £2 to get a copy of the report. Review the document, identify any mistakes, and have them corrected immediately.
4. In addition, complete a free registration for the electoral role because lenders use this for address verification.
5. Individuals who do not have a bank account should apply for one and keep it within the overdraft limits. They should also maintain a steady employment history without many gaps or job changes. During their lifetimes, individuals should not apply for credit too often because rejections appear on the credit report.
6. In general, apply for no more than two credit products within six months. It is important to cut old financial ties with others such as accounts shared during the university years or with an ex-partner. Any accounts that are old or unused should be closed, to prevent it from looking like the individual is overstretched and reduce possibility of fraud.
7. Do not shut down accounts that are no longer being used. It is incorrect to think that doing this will remove the account from your credit report and will cause your credit score to be reduced. It doesn’t happen like this.
8. Do not run a large number of credit card accounts simultaneously.
In addition, paying the bills on time and according to lender agreements will keep the credit rating acceptable.
Using A Guarantor Loan To Improve Credit
Ironically, we sometimes must take new credit in order to improve our credit rating. When people default on loan payments or miss credit card payments, their credit score may decline. New lenders then doubt our repayment ability. To improve the situation, we may need to take out new credit and make timely repayments to prove our credit worthiness.
It seems like taking out new credit cards or loans and repaying the balances on time is the easy answer. Not really. Anyone with damaged credit may find it difficult to get credit cards, cheap loans, or any loans. In this economy, lenders are particular about who they approve for new credit. This makes it more difficult for people to prove they are a good risk.
Rather than approaching every bank and credit card issuer in town, only to be rejected and worsen the credit score due to too many credit checks, try another approach. Unsecured personal guarantor loans feature a fixed term with competitive loans APR. Simply by having another person serve as a guarantor on a loan application, people with bad credit can qualify for new credit.
The application process is the same as for an unsecured personal loan but another person acts as a guarantor for loan repayment. This individual is usually a homeowner because the house is used to secure the loan. If the borrower does not repay the loan, the lender goes after the guarantor and can secure repayment by taking possession of the home.
The credit rating of the guarantor, not the applicant, is used to guarantee the loan on behalf of the applicant. The applicant gets the loan needed to help repair the credit score through timely repayments. Once this person has repaid the loan, he or she may qualify for unsecured credit, the loans cheapest for most people.
Identity Fraud For Personal Loans On The Rise
CIFAS, a UK fraud prevention service, reported that more people in the UK are committing identity fraud when applying for credit cards and personal loans. From January through September 2011, the number of identity fraud cases was two percent higher than during the same period in 2010. This was masked by the decrease in UK victims of identity theft.
While fewer people are having their identities used by others completing loan and credit card applications, more borrowers are simply making up details when completing these documents. Consumers may not really care about this but they should. Even though their information is not being stolen, they may end up paying the increasing cost of fraud.
As criminals create imaginary identities in their attempt to defraud organizations, innocent customers are forced to pay higher prices, premiums, taxes, and VAT to cover public sector losses. Consumers should not let their guard down when it comes to their personal information and account details, simply because the number of identity theft victims has decreased. In addition, they should double-check loan applications to be sure that every detail they provide is accurate.
Low loans APR and high inflation have created a favorable environment for lending. The value of the money used to repay this financing is lower than under other conditions, which is a positive thing for borrowers. HSBC has gone so far as to conclude that savers are in essence subsidizing current borrowers who are using loans to consolidate debt and obtain lower-cost financing.
Borrowers, lenders, and other consumers must work with anti-fraud agencies to reduce criminal behavior. Anyone who provides false information on a loan application has committed a criminal offense and faces legal action. Whether the borrower stole the identity of another person or fabricated an identity, there will still be serious consequences.
Here are some further resources relating to fixing your credit rating and credit scoring in general:
Money man Martin Lewis is here with more great Deals of the Week to help save you pounds
www.credit-mechanic.blogspot.com Shawn Reed discusses how to organize your debt to settle for pennies on the dollar. This information is 100% Free. This is Part 1 of a series of videos that will help you repair your credit yourself.
PBR: Darling threatens UK’s credit rating
Almost nothing was said in the Pre-Budget Report about how the government would tackle the nation’s debt – and now the experts fear a downgrade for the UK. For more finance and investment news visit www.citywire.co.uk.
Credit Repair Exposed – What the bureaus are hiding
www.ScoreMoreCredit.com – Credit expert, Brian Diez, reveals why it’s so difficult to remove inaccuracies from your credit report.
Latest UK Loans Tweets
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{ 212 comments… read them below or add one }
I am just curious on what is the difference between the rules from US compared to UK. Is it harder or is it easier to get a loan in UK? I just thought of asking you for me to tell my son who is in UK now..
I just want to thank you for having a useful site that really helped me a lot. I was able to get information where my first try was approved thanks to your site. I wish you can help more people.
I’m glad we were able to help you in some way Bruce:)
wow , 9 months to post a reply , i am glad that the loan applications go quicker
I’m very sorry for the late reply Bruce….sometimes comments slip through the net and as you can see the comment quota on this page now is quite large.
I am having enormous problems getting credit sine I lost my job last year. I’m only looking for a small loan to get some double glazing in our flat but just can’t get anything at all. Any ideas about no credit check loans ?
Hi Julian
It has become harder than ever to secure loans right now.But I suggest you read through some of our latest posts which will keep you up to speed with the fast changing UK loans market place. I would need to know a bit more about your current financial situation before recommending a particular type of loan
Hi Julian
We now have a much shorter application form for our unsecured loans and a much larger pool of lenders to choose from.
Thanks all you guys at Fast UK loans – really enjoyed the site. Never seen so many pages and many of them relevent. Keep up the good work. Darren
Hi Darren
Thanks for the positive comment. We are aiming to provide as much helpful content as possible relating to the fast changing UK loans marketplace and realise that in these trying economic times people need as much up to date information as possible. Over the next few months we will be running more polls and surveys to further understand the kind of posts/news are readership are interested in. Please feel free to email me directly if you have any subjects that you would like us to cover and if you are looking for a particular type of loan of personal finance package then don’t hesitate to send me over your requirements. I’ll do my best to point you in the right direction.
Hi,
I would like to ask for a different option. Not been discussed here up to now.
Is it possible to contact me by email ?
I would ask for advice, please !
kindly regards,
Hi Peter
I’ll ask someone to contact you and see if we can help in any way.
If you have a bad credit history it is just so difficult here in the UK trying to get a loan at a reasonable rate whose APR doesn’t resemble a cricket score. It beggars belief.
Hi Laura
It does seem that way at times but there are deals out there. APR is still on the high side but no way near as bad as it was say 6 months ago.
No credit check loans in the UK? I have just completed your poll of the day but don’t know which one this phrase comes under so might have ticked the wrong box. Is it payday or unsecured the right one? Cheers Marlon, Dalston
Hi Marlon
Why not send me over an email via the contact page and give me a bit more information.I’d be glad to offer you some further guidance.Nice to see more people using the daily polls too, it really helps us understand what our readers are looking for.
I haven’t been home to the States for a few years now but since the banking crisis over there like here, anyone who has a credit problem like the double glazing guy above its no surprise that they are all having problems getting any sort of loan. Tough times and even tougher times ahead. Heart goes out to all.
Hi Darren
Thanks for the positive comments:) We are trying our best to make this site as helpful as possible to our readers and realise that people need all the help they can get right now in these tough financial times
Hi Dana
I agree the country is in a darn mess and I after watching Bloomberg the other day and the Bernanke debacle it seems like those guys are in a bad way. It’s the usual story of our “leaders” glossing over the truth…which quite frankly isn’t pretty.
Hi Fast UK Loans. I recently had a CCJ and am now scared to apply for a personal loan. Do you think there is a stigma attached to having to apply for no credit check loans rather than a normal personal loan? Cheers Katie, Streatham
Hi Katie
I don’t think there is any stigma as such.If you think about it who is really going to know that you have applied for a bad credit loan? Unless you tell a member of your family or a close friend then your application will remain anonymous. Right now it would be easier for example to secure a payday loan rather than a loan that is secured on your house. The drawback of course would be the high rate of interest you would have to payback on a payday loan. I would suggest you have a good read through the many posts we have on this website which cover many types of UK loans. There is no shame in applying for bad credit loans as many thousands of people do this every year.Just try and make a good decision based upon intelligent research.
Hope this helps you.
How much is “fair” rate for a normal loan? I just want to know if the offer that I got was way too high because for my own opinion it is. I need your input about this matter. It’s a car loan and I am not sure if they took advantage of me not knowing too much.
Hi Danny
Can you tell me what rate you were offered? It is possible to get unsecured lending at 6.3% if you are borrowing over £7.5 K
I am planning to get my first loan this month and I was hoping to get it right so that is why I am doing my research and was hoping if you could enlighten me more or provide some suggestions. I would really appreciate it!
Hi there Yraj
Can you give me some idea of how much you would need to borrow and for what purpose?
why are you replying to posts that nearly 9 months old ??? … idiot
Hi Guys,
Great looking site
I am looking to get finance so that i can leave London and go and start my studies in Malaysia at the start of the next School year, but needing finance to be able to do this. PLease can you point me in the right direction of the companies i should be speaking to.
Many thanks
Matt
Hi Matt,
Thanks for the comment and kudos on the site…glad you like it:)
Firstly, you could look through some of our posts relating to student finance which can be found here: http://www.fastnocreditcheckloans.co.uk/category/student-finance
Secondly, you could check out this really comprehensive resource link. It’s a big UK government site, but has a huge section on student financing:).I wish you all the best of luck securing the finance you need and hope your studies in Malaysia bring you success and happiness in your life.
Here’s that link: http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/index.htm
Vincent
Nice resources Vincent, hope you get the finance you need Matt:)
Good Day,
I am Mr . james Smith , a Legitimate, Reputable money Lender. We are a
company with financial assistance. We loan funds out to individuals in need
of financial assistance, that have a bad credit or in need of money to pay
bills, to invest on business. I want to use this medium to inform you that
we render reliable beneficiary assistance as I’ll be glad to offer you a
loan.We Offer Private, Commercial and Personal Loans with very Minimal
annualInterest Rates as Low as 3% within a 1year to 50 years repayment
duration period to any part of the world.
email;jamesloanleander@gmail.com
Hi Mr Smith
Thanks for your comment but we are not looking for loans right now. We are a fast-growing UK personal finance information website that offers news and tips to our readership on a daily basis.
If you would like to send me some more details on your services I would consider posting them up for people to appraise.
Thanks again
Vincent
I would have thought that you would have checked this guy out before allowing him to post on this supposed professional site of yours. Have a look at his contact email address as a start, then do a search for him on the Internet. You will find he comes under SLI PLC which is Sheree Loans, a fake scam to access personal details from individuals. I mean, take a look at the interest – 3%? Get real, nobody would be offering this kind of loan.
Shame on this site!
hello mr smith wats your company called then because im after a loan but cant get one only because ive sometimes been a week late with payments but havnt missed any and i would like to borrow to pay some debts off and just have one payment
Hi Shelly
I would suggest you contact him on his email but would also recommend contacting your local citizens advice bureau before borrowing any money from less well known companies.
Where can I get a no credit check loan? I have applied for loans and all of them do a credit check and I always fail. Please put up a site that does real no credit check loans. I am tired of this situation now.
Hi Gordon
The situation certainly isn’t an easy one right now and credit scoring is still used in many cases.
I would suggest you look into the following comapanies who offer bad credit loans in the UK. They will hopefully be able to offer you some solid advice and a possible solution.
Norton Finance Secured Loan £3,000 – £100,000 loaned, 3years – 25 years term at 10.4%
Provident Personal Credit Provident Loan (Cash) £50 – £500 loaned, 6months – 13 months term at 272.2%
Blemain Finance Blemain Loan (Adverse Credit) £5,000 – £25,000 loaned, 3years – 30 years term at 19.9%
Vincent came up with some good options here, however you should also consider looking at Wonga. When you become a Wonga client your “trust rating” relates to how much money you can ask for. If you have never used their services before the maximum amount they’ll offer you is £400. This amount will slowly increase, up to a ceiling level of £1000 if they consider you to be responsible borrower. Worth looking into anyway and no faxing is required:)
Are you guys idiots?
All I want is a loan without a credit check..
What sort of stupid fool would send someone to a site for a loan when it does the exact opposite of what he wants?
they are not easy to get now….loan sharks hidden behind suits are wot most of these compenies are about…..look out mate if i were u!
Hi again Gordon
There is no need to be rude. We simply aim to provide our readership with current news and tips relating to personal finance in the UK.
When this site was launched a few years back “no credit check loans” or bad credit financing was a lot easier to come by.
Due to the continuing financial crisis most loans providers are doing some sort of check on applicants as they simply cannot afford to take on large volumes of bad debt.
There are many posts on this site offering insights into applying for bad credit type loans and I would suggest you try using the search box to pinpoint specific topics.
Did you try contacting any of the lenders I mentioned above?They would be able to tell you exactly what credit checking if any they use to vet new customers.
I understand that your are frustrated and hope that you find a solution to your current financial predicament.
I disagree with Gordon, I have been looking for a payday loan for some time now and I found Wonga did work for me, although it took time for them to build trust. At first it was only £400 but now they will lend me £ 500 and I only have to repay £537.
Cheers Paul, West Yorkshire
Really glad to hear that Paul:)
Hi Paul
So pleased that you had a positive experience with Wonga. They seem to be building quite a loyal customer base and winning some awards too.We will be monitoring their progress and reviewing any new financial products that they release.
Do you reports cost money? I lost my job and can’t really be spending much money at the momement.
Hi Craig. All our reports are free, so please download them or view online. I’m sure you will find them useful.
Craig, you’ll be pleased to know that we are added many new reports over the coming months which include subjects ranging from peer-to-peer lending to ISA’s. Be sure to come back every so often and check them out:)
can you do a report on the best discounts shops as they are only pound shops near me in Liverpool???
I’ve been using quick quid for about a year now. They are excellent. The trick is to start out borrowing a small amount, build their trust by repaying on time. They will then start lending you more money. They now lend me almost a thousand pounds on easy terms over a couple of weeks. Get in there. Quick Quid are tops.
Dave, Durham
Thanks Dave, glad you had a positive experience with this company.However, I’d like to add that the payday loan option isn’t for everyone
Hi Dave, here is a link to a YouTube video from which discusses the virtues of using quick quid over unauthorised overdrafts. It’s biased of course but other readers may find it insightful?
Dave, did you approach any other payday lenders first before Quick Quid.Just interested as to why you opted for them in the end? They do seem to have quite a high profile right now.
ican not get aloan no were
Can you be a bit more specific Rosemaire? What type of loan were you looking to get? Have you managed to get hold of a copy of your credit report? Feel free to email me direct with a bit more info and I will do my best to help.
Hello
This was useful as I didn’t know much about credit reports or bad credit loans.I’m just confused about all the different terms thats all. I need to know more about car loans as I wanted to get a car after leaving uni.Can you tell me how to get a car loan if I’m not earning much money right now?
Hi Rich
It can be quite tricky to get a car loan right now if your credit is really bad.Things have changed quite a bit in the last year or so.
However, the following companies may be able to help you out and it’s certainly worth contacting them.
As follows:
carcraft.co.uk
infinitycarfinance.co.uk/index.html
acceptcarcredit.com
I got a decent old Mondeo as I secured a loan from accept:)
Carcraft were ok but had to faff about for a while to get approved….I got a blimmin Maestro but APR was pretty much through the roof to be honest
Hi,
Please could you I have a contact email so I am able to discuss my situation and what finance I am looking for?
Many Thanks
Hi Fran
If you email me some details via the email address on our contact page (site footer) I’ll do my best to help:)
Hello
I didn’t want a credit check but really wanted to know what my profile score was like.Is Crdit expert free or do I pay now for it? Who owns them to and will they stop me buying a new car later or a tv if its a bad report?
thanks sam
Hi Samatha
I believe Credit Expert offer a 30 day free trial where you can download a report. After that you get billed monthly if you want to continue keeping tabs on your credit file.Credit Expert is actually owned by Experian the large credit referencing agency.As you may well know they have been advertising on TV quite a bit these days.
Can anyone tell me where I can get a loan for home improvement purposes? I need a new sofa, washing machine and hifi and I have bad credit. Thanks
Hi Gordon
You could try contacting Gallery Finance directly as they appear to specialise in these types of loans.Please get back to me and let me know how you got on:
http://www.galleryfinance.co.uk/home-improvement-loans
Hi Jim, if you have a moment would you be able to call me on 0750 641 9032. I’ve been reading through your site and i’m extremely impressed with the quality as well as the quantity of the content on your site.
I run a small SEO company in North London and I would like to talk through some ideas I have on how we could improve your site and rankings in google if you are interested to hear them. I look forward to hearing from you. Best regards, Paul Giles
Hi Paul
Thanks for your offer, we have quite a few people working on the site right now adding quality content for our readership but we are always open to new suggestions, so will likely give you a call sometime.
In your section headed “tips on improving your credit rating” there is a little graphic which gives equifaxes definitions of credit rating. I thought the article was going to talk about how equifax select these different parametrers. Unfortunately the article doesnt do this and instead talks about how to improve your credit score. That’s all very well and good. It is informative but I am dying to know how these mysterious credit agencies gather and use the information they have on record about the man in the street. Are you able to find out and tell us their method of calculating people’s credit scores? Cheers, Craig, Aberdeen
Craig_White6 somehow I don’t think equifax and experian are going to share there exact criteria for credit rating with everyone. Of course its going to remain a secret. I work in IT and its like asking goole to tell you there algorithms for ranking websites. It’s just not going to happen.
I’m afraid we can speculate about credit ratings and how they are calculated but will never know exactly the critria that they guage everything by.
Nice comment Craig and great feedback Matthew. I have to say that I agree with you on this, the two “giants” of credit scoring are never going to divulge the exact methodologies they use to compile their reports. The search engine analogy was quite apt.
Craig, From my own research it would appear that Experian and Equifax use the following types of parameters. The mathematical methodology for working out your FICO score is owned by Fair Isaac…and there is no way that they would reveal it in detail:
35% of the score comes from your payment history. Whenever you skip a payment, are late, or are conatcted by a collection agency, this score changes.
30% of the score comes from the quantity of outstanding debt that you presently have. Items like vehicle obligations, home obligations, and the amount of credit card/store cards you have will impact this score.
15% is obtained from the amount of time you have been qualified for credit. Essentially, the longer you’ve had credit, the greater your score ought to be.
10% comes from any new credit you might have. Should you open a brand new line of credit, this can have an adverse effect on your score (until you can prove that you can pay those bills promptly).
10% comes from the type of credit that you presently have. It is certainly advisable to have some of kinds of credit to be able to increase this score.
That is absolutely incredible – I had no idea bank overdraft fees were so punitive. Payday loans seem cheap in comparison. Let’s not beat about the bush though – everyone knows that if you fail to pay back a payday loan, you are on the receiving end of some heavy penalty charges that work out to be far in excess of the original amount borrowed.
Hi Kathy
This is an astute comment and thanks for posting. Bank overdraft fees can be ridiculously over inflated and in my opinion unethical. Conversely payday loans have very high rates of interest and should certainly be approached with caution; they do however offer people a choice of fast cash if and when they need it.
Wow! I hope my questions will be answered as well since there are a lot of people who are seeking assistance. I am about to get married and I plan to get a loan but I don’t have a regular job since I am a freelance artist. Or maybe I am doing the wrong thing when I applied a week ago.
Hi.
Appreciate some assistance, I have been living and working abroad in the UAE for the past 6 years and decided to bring my young family back home. I have no debt, have kept a current account running in the UK (no funds) whilst away. I am coming back to a job, will be renting, and need to sort my wife out with a car..any advice on this..I have a small deposit, but probably no credit history as I have been away for a while..Thanks
Hi Hugo
Thanks for your post. I will pass this onto Vincent who will get back to you with some suggestions. I hope you are happy to be back in the UK:)
Howe are trying to get a loan for £5000 but because my husband has an incorrect ccj from hmrc for £240 on his file were worried about applying and been turned down. We have a letter from hmrc saying we owe them no money and are in the long process of having it removed but it’s taking a long time. They unbeknown to us placed this ccj for a shortfall in NI contributions but later sent a letter saying they were wrong and infect we owed nothing but we didn’t know about this ccj until my husband randomly looked into his crf and discovered it. Do you think there is anyway we could get a loan or are we wasting our time until this is removed?
Hi Shal
Did you mange to get the CCJ removed? Would be interested to hear how you’re getting on with this. Usually there is no point applying for finance if you have a CCJ in your file.
Hi I’m currently running my own business but was recently hit with a case of fraud that cost my company about £10k!!! My business has only been running for about 12mths and this has put an enormous dent in our cash flow so wanted to get a loan to help my business through this awful situation. Unfortunately I have got terrible credit personally so I’m not really sure if I’d even be considered for a loan at all. Any advice here would be most appreciated.
Hi Craig
Firstly, I’m very sorry that your company was hit by fraud and it was so costly. I can see why you might need some financial assistance but realise that this may prove to difficult with your current credit situation.
If you need further info on business fraud you could check out: http://www.thefraudadvisor.co.uk/index.html
I would start off by downloading a copy of your credit report. As mentioned further up on this page I believe Credit Expert offer a 30 day free trial where you can simply download a report. However, you get billed monthly if you want to continue with their services.
Alternatively, you could check your credit record with one of the following three credit reference agencies:
Experian – http://www.experian.co.uk – You can order your £2 credit report direct online, by phone, or in writing.
Equifax – http://www.equifax.co.uk – You can order your £2 credit report online, or in writing.
Call Credit – http://www.callcredit.co.uk – You can request a copy of your statutory £2 credit report by post.
I hope this has helped, but feel free to post up any more questions.
Hi Craig,
Your position is similar to that faced by many. As with most situations, knowledge is power. The danger of no credit check loans (which are considered when people think they have bad credit), is they often come with very high interest rates, if these are too high to pay back, or you miss a payment your credit report/score gets even worse.
As with most things there is no quick fix, there is payday loans for example Wonga, but max is £400 (at first) which for double glazing may not be enough.
i would seriously consider checking your credit reports from Experian, Equifax and Callcredit, as lenders use the data they collect on you, along with your application data to make decisions on whether to lend to you or not. There maybe some quick fixes in these.
Is your credit score actually bad, check this out, by accessing the credit reports above.
To get a good credit rating/report, you need to show a good credit history, so 12 months of paying all debts on time, for example a credit builder credit card from capital one, vanquis etc. After this period it would put you in a better position to apply for credit, although it does depend on your exact circumstances.
Hi Edward and thanks for the short but helpful tips. My Vanquis card did actually help improve my credit but you have to remeber to pay the minimums on time or you’ll get even more screwed up credit wise….
Hi Edward
Thanks for your informative reply to Craigs comment. I’m sure it will be of benefit to many people struggling with credit history issues right now.
Payday/No Credit Check type loans may not have the most favorable conditions for the borrower, but usually they are not that bad if paid back promptly. Furthermore, they are designed for a specific niche. They are not the answer for everybody by any means. They are more suited for those people who have no other options that they qualify and have a short-term need. For those people, it can make sense but they still should be approached with caution. They get bad press but I think they can be useful.
I know that no credit check loan has higher interest rates but still I think this is the only way that can give me an instant solution. But do you know any no credit check loan that offers beyond 10k?
Hi Jared
Loans that are intended for people with adverse or poor credit histories are usually short term in nature, take payday loans for example. Loans of a large figure usually need to be secured against an asset like a house.
This site is good. With the help of form above it gave me an idea on what to expect and more like about the details. Though, I hope to get a real person to guide me.
Hi,
I am an international student, and I have secured admission at Imperial College, London. I wanted an education loan and I have no US or UK cosigner. Also I wanted an unsecured loan (loan without any collateral). Can you please help me out ?
Thanks and regards,
Nilotpal Addy
Hi Nilotpal and thanks for posting your question here. As this is quite specialist I suggest you take a look at the UK Council for International Student Affairs website.
It is packed for of information on this subject matter and also contains various application forms as well.
The web address is below:
http://www.ukcisa.org.uk/student/source_funding.php
You can also contact them by telephone on the following numbers:
Outside the UK: +44 20 7107 9922
Inside the UK: 020 7107 9922
Their postal address is:
UKCISA, 9-17 St Albans Place, London N1 0NX. UK.
I really hope this information helps you out and be sure to come back and post your findings:)
Hi Steve,
I checked out the site. However they do not give any loans to international students. Do you happen to know any bank or organizations who gives loans to international students. I would be really glad if you can help me here.
Thanks and Regards,
Nilotpal Addy
Hi Nilotpal
Have you tried internationalstudentloan.com? According to their website they seem to offer financial support for students who plan or have already secured a place in a UK College or University.
Normally, how much do they provide when if it’s a no credit check loan since it is faster but I don’t know if the chance of getting it is higher than other type of loans?
You have the most amazing video in this page. I love where I can find everything in here about loans. Wish me luck on my loan application.
Thank you Lea, we are adding new content daily and will soon be creating a new video library which will cover personal finance and loans related issues.
good morning,
can you help me with my cedit score? does it cost anthing to do that and can I still get a car or a bike without good scoring? my friend just got a new bike and I just worried that they wont give me money so easily. the trouble was I took to long to pay off a catalogue 3 years back and find it hard to get the credit since. my girlfreind used to always be on the catalogues ordering things when I was at work and it got me into trouble.
Thanks anyway
Hi Richard and thanks for the post.
We cannot help you directly with your credit score but have quite a few pages on this site which deal with this subject matter.
You could start by reading through the following report.It discusses simple methods that you can use right away to start building a good credit score as well as giving you some insights into the number scoring system.
In the meantime I would suggest not applying for any new lines of credit, as this could well make matters worse.
The report I mention will certainly point you in the right direction. I would be interested to hear how you got on.
Here’s the direct link to the report page:
http://www.fastnocreditcheckloans.co.uk/bad-credit-history/how-to-improve-your-credit-rating-or-credit-score.html
Vincent also describes credit scoring in a comment made on May 10th on this very page. It breaks down the numbers and may help Richard get a slightly better understanding of how the scoring is calculated:)
Richard
You may also want to check ou this post which relates to credit applications and asks how many credit applications is too many.
It’s a common mistake made by a lot of people so don’t put too much blame on yourself…just try and learn from past mistakes.
Here’s the post:
http://www.fastnocreditcheckloans.co.uk/credit-history/how-many-credit-applications-is-too-many.html
I think I owe a loan shark money….help!!!
Hi Clare
Firstly we need to understand what a loan shark actually is…
A loan shark is usually an unlicensed moneylender. Licensed moneylenders are regulated by the Office of Fair Trading (OFT) and must adhere to the OFT’s codes of practice.
Since they are not licensed, loan sharks operate outside the law. If you ever borrow from them it’s likely you’ll:
•get a loan on very bad terms
•pay an extortionate interest rate
•be harassed if you get behind with all your repayments
•be pressured into borrowing more from them to pay off one debt with another
How to find out if a lender is licensed:
The Consumer Credit Public Register lists everyone with an OFT licence together with everyone who may have applied for one or has had one taken away or suspended.
It’s free to get basic information from the register, including trading names as well as the activities for which an enterprise is licensed.
To search the public register, telephone 020 7211 8608 between 9.30am and 4pm Monday to Friday.
If a lender isn’t listed as having a current licence, don’t borrow money from them.How to proceed when you have borrowed from a loan sharkWhen you have borrowed money from a loan shark you are under no legal obligation to settle your debt. You need to get hold of your local Trading Standards office immediately. They’ll help you deal with your situation as well as the loan shark.
To find your nearest Trading Standards office enter your postcode in the box located on the right-hand side of the Trading Standards website homepage.
Clare, I suggest to follow the steps I outline above and please try not to worry:)
All the best
Steve
I hate loan sharks as my cousin Pete got really scammed last summer. The a*&^ kept hangin round his house and demanding money all the time…he was real nasty too…makes me shuder to think of it now
Yes Clare and Eliie
I don’t think these guys are going to be nominated for a Nobel Prize any time soon…
Please help me decide if I will apply on quickquid or not or if you have a much better suggestions that would really be a great help.
Hello Dorothy and thank you for your comment. I cannot really recommend QuickQuid to you and wholeheartedly say that their solution is the best fit for you. If you are looking for a payday loan there are numerous providers out there.You must remember that these loans have very high rates of interest and should be approached with caution. Many would argue that if they are paid back on time then there really isn’t an issue. However, I think problems arise when people take out numerous short term loans and then default on the repayments.
can you tell me what catalogs are best to use if you have a not so good credit? I wanted to buy some new clothes and get them before my mates weddin which ius near now and my old clothes are not good no more.
Hi Kellie
Here is a list.You could do some further research on these and get a better idea on how they work:)
These are pretty much all pay now pay later type deals.
Very Catalogue
Simply Be Catalogue
Fashion World Catalogue
That’s My Style Catalogue
Isme Catalogue
Littlewoods Catalogue
K & Co. Catalogue
Next Directory
JD Williams Catalogue
Julipa Catalogue
Marisota Catalogue
Premier Man Catalogue
Simply Yours Catalogue
Viva La Diva Catalogue
don’t like these catalogs as they ripped pff my mate when she wanted to buy some trainers they charged a lot my than they said they would
I liked Next as I got a nice pair of jeans plus some adedas trainers for a good deal via there cataloge
Isme are ok but didn’t like Simply Yours and there shitty attitude
Hello
I have been thinking about getting a log book loan instead of a payday loans. What do you guys think of them are thy bad like I hear some people say they are.Will I easly lose my car if I get one too?
Hi Marcus
We have some pages on this site which describe what Log Book Loans are though why anyone would be needy enough to loan money from such a company is beyond me! I had a look at this web site a few weeks ago when asked me about logbook loans and I also told her mot to go there etc. If you have to make use of a company like this, you simply can’t afford a loan, so you will forfeit your car or truck! I wouldn’t have any person have my log book and neither should you. Take my advice, everybody, steer clear of businesses like this. They prey on poor people as well as needy and rip them off.
Hello can anyone tell me whether having a bad credit effects undergradute student loans?
I’m really thinking about going to university to study chemistry and the course would be an undergraduate course BSc. I have a pretty shocking credit score and am not certain if this will effect my chances of securing a student loan. Any ideas?
Hello Valerie and thanks for your question.
Your credit shouldn’t affect recieveing a student loan from the SLC (or SAAS if you’re in Scotland) – Furthermore, a family friend has a very bad credit history but they recieved the complete student loan in September when they went into the 1st year of a BA degree.
They use different criteria to credit reporting agencies and if you meet the requirements you should be eligible for a student loan, irrespective of your credit history.
The best thing to do would be to contact them and speak with a specialist advisor – but make sure you get a name; because if and when you need to call back and you speak to someone different, and there aren’t any notes written up on your file from the previous call months ago – it’s enough to make anyone go mad!
At least if you can say, I spoke to …. and she or he advised me that … then it allows you to seem more credible. Best of luck!
I keep seeing borro ads on tv. Are they like payday loans…what are they please?
Morning Kev
I’m not that familiar with Borro but am also noticing the ads on TV right now. From what I can gether they seem to ffer the following:
Borro describe themselves as short term asset lenders and lend against a broad range of assets.
Borro offer people short term loans of between £1,000 to £1,000,000 secured against assets of significant value including Jewellery, Luxury Watches, Fine Art, Antiques, Sculptures, Luxury Cars, Yachts, Speedboats etc etc
borro state that they are more flexible, cheaper, faster and more profitable than traditional Secured and Bridging Loans.
Interestingly they state that people benefit from an longer loan term at significantly lower interest rates.They claim there are no exit or early redemption fees and that their bridging finance is quick, easy and hassle free.
I would suggest you go and take a good look at their website which has a decent video and FAQ’s page.This will give you a much clearer understanding on what they are all about.
I would really be interested to hear how you get on with them as they are certainly quite high profile right now.
Kev and Jim
I have just put up a post which gives you some more insights into Boro. Kev, I’d be interested to hear some feedback on this.
http://www.fastnocreditcheckloans.co.uk/personal-loans/borro-reinventing-pawnbroking-in-the-uk.html
Does anyone here know where i can get an easy fast loan in Manchester? I do need one quick ok.
Hi Becks
You could try contacting the following local companies who are all based in the Manchester area.
Supreme Finance Ltd
supremefinance.co.uk – 58 Swan St, Manchester – 0161 834 5999
D F H
debtfreehelpline.com – 84 Princess Street, Manchester – 0161 228 6100
Park Finance
park-finance.com – 75 Middleton Rd, Manchester – 0161 795 0988
Bridgfords
bridgfords.co.uk – 2/10 Albert Square, Manchester, Gtr Manchester – 0161 452 7513
Money Guardians
mymoneyguardians.co.uk – 23 New Mount Street, Manchester, Lancashire – 0800 084 8549
Eccles Savings & Loans Ltd
ecclesfinance.co.uk – Pearce House, 80 Cawdor Street, Eccles, Manchester – 0161 950 6666
Hi I just found this when typing about loans but wanted to know if its easy to get a good credit card when your credit score isn’t so good? Is there much you can tell me about these and could I get one that easily right now? Do I need a bad credit credit card for my situation then?
Cheers
Hi Warren
Thanks for your query.
There seem to be 4 credit cards which might fit your needs. APR unsurprisingly is pretty high on the first 3 but I’d be inclined to Google each card individually to learn more about them.
The e-Platinum card almost sounds too good to be true and I suggest you research that one in some detail:
They say….
• Get the benefits of PLATINUM
• Credit limit £5,000 (but this can be increased)
• 0% APR Fixed Forever!
• Guaranteed Approval!
• No Credit Checks
• £500 cash advances
• Reporting to major credit bureau.
Here’s a brief overview of all 4.
Capital One Classic (VISA)
Interest Free Duration (56 Days)
Maximum Credit Limit (£1,500)
APR representative (34.9% variable)
Aqua Card (Mastecard)
Interest Free Duration (51 Days)
Maximum Credit Limit (£2,200)
APR representative (35.9% variable)
Vanquis Card (VISA)
Interest Free Duration (56 Days)
Maximum Credit Limit (£1,000)
APR representative (39.9% variable)
e-Platinum Plus Green Card
Interest Free Duration (56 Days)
Maximum Credit Limit (£5,000)
APR representative (0% variable)
hi
what’s up with tesco and there loans. How come they do loans as they are a supermarket….
can i get a loan from them if I apply in my store in Angel?
Hi Rob
Yes, Tesco really do offer loans and I have included a little summary below.
An example Tesco loan is indicated below to give you a rough idea of what may be available to you Rob.
Representative example
Loan amount £10,039
Monthly payment £225.12
Term of loan 52 months
Total amount to
be repayable £11,706.24
7.4% APR representative
(this is also the borrowing rate)
Here’s the web address for Tesco loans:
tescobank.com/personal/finance/loans/
You may also want to take a look at the following review site which describes some
of the experiences people have had with Tesco Loans. However, you should also be aware that these sites sometimes contain fake reviews which are either used to give a company a positive boost or attack them in a negative way.
reviewcentre.com/reviews56732.html
I really hope this helps you out.
My sister wants me to lend her £1,000 to go to Greece with her boyfriend who I don’t like much….anyway is it a good thing to borrow money of your family or should I get a payday loan instead? My sister keeps hassling me now and I dunno what to do!
Hi Elisabeth
You may want to start by reading one of our recent report-length posts which discusses the subject of lending to your friends and family.
You can read this by clicking the link below:
http://www.fastnocreditcheckloans.co.uk/personal-finance-tips/lending-to-friends-and-family-is-it-a-good-idea.html
Basically, loaning cash and supplies to friends, family and local community members pre-dates formalized finance institutions.
However, in its modern form, peer-to-peer lending is really a by-product of internet technologies, especially Web 2.0.
The creation of the marketplace niche was further boosted through the global economical crisis in 2007-2010 when person-to-person lending platforms promised to deliver credit during the time when banks as well as other traditional finance institutions were having fiscal difficulties.
The very first person-to-person lending company to launch in the uk was Zopa, in February 2005. The first person to person lending firm in the United States was Prosper, which launched one year later, in February 2006.
The first company to launch in Canada for business financing was P2P Financial in September 2010.
Reasons behind peer-from-peer borrowing vary from education and mortgage loans and business funding to vet bills and weddings, typically the most popular loan being debt consolidation.
Martin Lewis also has some interesting discussion going on his money saving expert forum and the following thread will offer you further insights into this subject and peer-to-peer lending generally.
http://forums.moneysavingexpert.com/showthread.php?t=76953
Why credit cards might not be such a great idea:
A readers thoughts…..
You get a pre-approved 0% fixed interest rate credit card application so you start believing that you’ll be getting a 0% fixed interest rate credit card, but outside of nowhere ”MAGICALLY” they send you plastic cards not what they advertise but the one they want you to have!
The credit card companies enjoy it whenever you spend more money than you have! Because this is the stage where they get their money from! They become happy and you really are in financial trouble!
The research demonstrates people spend less money once they shop using cash where as the people who use credit cards spend more money! Arise people!! You are burning your bank money!
Your heart can never stop dreaming! Sometimes you’ll save money when you forget it in your own home! But suddenly you find out that you’ve a thing called “credit card” and you automatically make an IMPULSE PURCHASE!
The credit card company has a strategy of satisfying you with their TRUTH-LIES! Because once the bill at the end of the month comes, it is so less that you think that your overspending isn’t a big deal! Basically their strategy is to elongate the borrowed funds duration to ensure that rate of interest will increase and at a longer stage you’ll be in high DEBT!
You know! There is a hidden rule on your card, that is so smaller that it is hard to read even! And you don’t prefer reading it. But when you happen to read it, it is in the company’s interest more.
Not only the company makes money by the interest you pay, but also they earn a lot on the fees.
Credit card companies also charge huge interest rates on cards, which can be double than the original interest rate. Have you ever thought! How are you going to pay that all?
Credit Card companies just wait for you to make a financial mistake! Because when it gets in to your credit history, they have a full right to raise your interest rate to any level.
All of you are aware about the importance of credit files and when you have bad credit it will affect you in so many ways.
Think about this guys and don’t be too hasty to get a credit card!!
I agree with this and also should mention the evil that are store cards. They get you in the end too and believe me its not pleasant at all. I got ripped off and ending up paying loads more for some clothes at Next….just be aware
Hello I am looking for a loan. I need a loan with no credit check at all. This site talks about them at length. Where do I get one? Please give the name of a company. Thanks I am desparate. Dave
Hi David and thanks for your question.
Times have certainly changed since we launched this site some years ago….
Lenders daren’t hand out cash to complete strangers, knowing very little about them,
AND trust them to pay it all back?
All properly licensed lenders need to ensure applicants can afford the repayments before lending money. If you are searching for an unsecured loan and have bad credit, then you should look at improving your credit score by correcting your delinquent accounts. Joining a nearby credit union could seriously assist you on the road to improving your finances.
Why not read our unsecured personal loans report (link below) which will give you a clearer understanding on how unsecured borrowing works in today’s uncertain economic climate:
http://www.fastnocreditcheckloans.co.uk/personal-loans/personal-loan-deals-some-helpful-tips.html
If you scroll up this page you will see a comment left by our editor Vincent On March 25 which lists some UK-based bad credit loan providers. These companies are far less stringent in their credit checking but will of course charge you much higher rates of interest….signs of the times I’m afraid David.
Recession Or Depression- What A Choice?
The FSTE leading shares index fell Monday morning and Standard & Poor’s recently reduced the U.S. credit rating from AAA status. The buzz in the investment sector pertains to an almost inevitable recession or potential depression. Everywhere we look, the word “debt” seems to confront us, from an individual to a global scale.
George Osborne recently criticized European countries for not having a plan to handle the eurozone debt crisis. As experts predicted a grim global economy, the FTSE fell 100 points. Crisis economics specialist Nouriel Roubini, known for accurately predicting the world financial crisis of 2008, commented that Western financial heads have “run out of rabbits to pull out of hats.”
Mr. Roubini recommended U.S. and Eurozone fiscal austerity measures in the medium term. He also suggested a reduction of U.S. mortgage debt reduction. Though it may not be possible to prevent another recession, he said, policies like these can keep a second depression from occurring.
As the market roller coaster continues, savers are watching their pension funds take big hits. The lining in this cloud seems to be made of gold, not silver. Gold climbed to a record high of more than 1,700 U.S. dollars. This may provide solace to those who fear the Dow and other global markets will have a negative reaction to the U.S. becoming an AA+ economy.
Mr. Osborne considers the UK to be a “safe haven” in these troubling times. He encouraged the U.S. and other nations in the EU to copy the austerity measures implemented by Britain. Mr. Osborne called for swift action in order to be ahead of any possible future events. Finance ministers feel that Germany should underwrite loans debt within the eurozone in order to stabilize the struggling euro. Only by acting together can countries help solve this global crisis.
Its all lies if you ask me.How can you trust a thing these politicians say? All we have to look forward to in this country for at least another year is rioting and unrest….people are skint and skint is bad!
I was wondering whether the interest rates are going up and will this make it tougher for me to get a loan right now? Can you explain at all.
Simon, If The Base Rate Holds, Borrowers May Benefit….
Since the release of the recent Bank of England inflation report, experts predict that the base rate will remain at 0.5 percent until 2013. This could be great news for UK residents taking a loan in the near future and those who have variable rate or tracker mortgages. Consumers who protected themselves with fixed rate mortgages may now be questioning that move. Mervyn King, the Bank of England governor, has not officially announced that rate will remain low until 2013. However, analysts studying inflation rate forecasts believe it will be a while before the base rate increases. This means that homeowners with variable rate and tracker home loans will benefit from lower APRs. Tracker loans APR may remain lower for much longer than many people expected. Financial experts at Think Money reported that the long-term prospect of a low base rate may lead lenders to offer lower mortgage rates in coming months. Personal loans may also join the cheap loans category. Other products like overdrafts and credit cards could also be granted cheaper interest rates, welcome news to those in debt. Consumers attempting to consolidate their existing debts using a consolidation loan may also benefit. If the debts each carry higher interest rates, consolidating them into a single loan with a lower rate can save a lot of money.
This extra cash can be spent on needed items or used to make extra payments on the consolidation loan. Savers are the ones who may experience the downside of a continued low base rate. Savings accounts may continue to offer poor returns.
Savers are watching their deposits grow slower than even just a few years ago. It seems a bit ironic that those who stabilize the economy are punished during these times but that is the way the financial sector sometimes works.
Hi Everyone
Some breaking news for all those intested….
Loan Restrictions Cause UK Housing Prices To Hit 19-Month Low:
Data released by LSL Property Services Plc and Acadametrics Ltd. revealed that housing prices in the UK dropped to the lowest in over one and half years in July. First-time buyers were dissuaded by larger deposit requirements for home loans bank issued. This indicates that people who have the cash for a large deposit are in a great position.
Between June and July 2011, average prices of homes in Wales and England fell 0.1 percent, to 217,300 pounds. December 2009 was the last time home prices were that low and the change was a 2.6 percent decline from one year earlier. Inflation is outpacing wage growth and banks are still restricting lending, leading many to conclude that the housing market is in for a continued struggle.
Peter Williams, chairman of Academics, commented that the escalating sovereign-debt issue in Europe and U.S. credit rating downgrade threaten housing activity. These actions spurred a global selloff within the financial markets earlier this month. Mr. Williams sees few indicators that the housing market will experience great change within the upcoming few months.
Acadametrics tracks ten regions within Wales and England. Both it and LSL use results from price measures like UK Land Registry transaction data. All but London experienced increasing declines in prices within the past three months, when compared with one year prior. Northwest England had the largest decline, dropping five percent. London, on the other hand, experienced a 0.4 percent gain.
As the housing recovery stumbles, the Bank of England maintains a record low 0.5 percent interest rate. Mr. Williams notes that the core issue regarding the housing market may be lack of demand. Loans are available and have fallen in cost, so these are not the problem. He believes that activity could turn around if news on the economic front improves and price declines slow during the upcoming months.
Hi
I’m Dan and recently finished an economics MBA. I have found the comments on here to be quite diverse and interesting and the House price post above based in part on Acadametrics data quite revealing.
However, no one has really mentioned the unemployment figures here in the UK which right now are pretty shocking. I myself was surprised….
Try and get your collective heads around the following. It doesn’t make for happy reading, but is certainly a wake up call.
Unemployment In UK Reaches Nearly 2.5 Million….
On Wednesday, the Office for National Statistics released the latest UK employment figures. Unemployment rose to 2.49 for the three months ending June 30, representing yet another blow to the economic recovery. The 38,000-person increase in unemployment was unexpected and is a drastic downturn, adding to the bleak picture.
According to MBA & Company Director Daniel Callaghan, employment in the UK has experienced “dire straits” during the last few weeks. Mr. Callaghan commented that recruitment within the banking sector is at a standstill and business market confidence is low. In the largest increase to occur since May 2009, 1.56 million people claimed jobless benefits.
During the three months ending June 30, redundancies increased by 32,000, reaching 154,000 for the quarter. The number of individuals in work also increased, climbing 25,000 to a level of 2.97 million. This increase was many due to more part-time work. At this point, those looking for jobs are taking whatever they can get because they realize that some income is better than none.
The unemployment rate is currently 7.9 percent of the UK population considered economically active. This is a quarterly increase of 0.1 percent. As of late June, 1.23 million people had been unemployed for as long as six months. This figure is 66,000 higher than it was for the prior three-month period. It stands to reason that many people are looking for cheap loans to tide them over, but are likely not experiencing success due to their lack of employment.
During July, the claimant count rose by 37,000, the greatest increase the UK has seen since July 2009. Drilling down further reveals that there was a 21,000 increase in the number of unemployed women during the quarter. This figure currently stands at 1.05 million, which is the highest it has been since May 1988.
oh that’s great isn’t it? My house is worth diddly squat already and now I have even less to look forward too! Send me some good news Vincent for God’s sake
Hi Rob
It was Clare who made this informative but I guess somewhat gloomy post (sorry Clare)…but I’ll do my best to post something more uplifting…I don’t see 100% mortgages eturning to the UK anytime soon though Rob;)
Thanks Vincent…nice to be appreciated:)
nor is mine mate…you’re not the only one going through that at all…don’t you worry.
I thought I got lucky when I bought my council house but its worth naff all now!
Guys
Sorry to be a gloom monger but this should be mentioned….
Ireland And UK To Lose MBNA Brand!
MBNA is currently one of the largest European credit card providers. With approximately £11.6 billion in loans and 5,000 workers in the UK and Ireland, it has a major presence. Bank of America has decided to exit the MBNA credit card business here, placing these jobs at risk. The bank says this move is designed to strengthen its balance sheet and improve capital ratios.
The UK stands to lose as many as 4,000 jobs and an additional 1,000 jobs are at risk in Ireland. Since it opened in Ireland 14 years ago, Bank of America has aggressively sought market share. In addition to the MBNA brand, MBNA also offers affinity cards for companies like Arsenal, Ryanair, the RSPCA, and the London Wasps and London Irish rugby clubs.
Bank of America Chief Executive Officer Brian Moynihan stated that the MBNA credit card is still a “core product” in the U.S. However, otherwise branded international consumer credit cards are not, based on the new strategy. The current efforts are attempts by Bank of America to divest non-core assets, thus the UK and Ireland must go.
On Monday, Bank of America sold its MBNA division in Canada to Toronto Dominion. It has also reached an agreement to sell its Spanish unit. Also on Monday, Ireland’s Carrick-on-Shannon and Chester staff were informed that MBNA is leaving the country. Some of them had already been told the news by U.S. relatives worried for their jobs.
MBNA employees in Ireland and England must now wait to see whether a buyer will come forward.
Those who have loans through this brand are also playing the waiting game- no word yet on how their financial arrangements will be handled. Cheshire West and Chester council Chief Executive Steve Robinson stated that MBNA has played a “leading role” in Chester since opening 18 years ago.
I didn’t realize that MBNA was such a big employer on our shores. The implications really are quite severe. Another 5,000 people out on their backside if a prospective buyer doesn’t come forward. SteveH you are indeed a doom monger and anyone who regularly reads your posts must have turned into a manic depressive.
Hi Dirk
Hot off the press for you…
Worldwide Slowdown Feared As Britain’s FTSE Falls Under 5,000
On Friday, top stocks in Britain plunged and the FTSE 100 fell under the 5,000 level. Experts blamed fear of a worldwide slowdown that could put major economies into another recession. Concerns regarding short-turn funding stresses caused banks to be the worst casualties. Shares of Lloyds Banking Group declined 7.7 percent, making it the worst FTSE 100 performer.
Lloyds was not alone in its misery- Royal Bank of Scotland shares declined 6.2 percent and Barclays fell 5.9 percent. On Thursday, some banks in Europe had to pay higher rates for loans backed by U.S. dollars, causing investors to become nervous. To borrow three-month loans, Royal Bank of Scotland and Barclays paid just over the LIBOR rate of 0.29778 percent.
SVM Asset Management Managing Director Colin McLean stated that a global slowing in growth could further impact British banks. He does not see the situation ending until bank balance sheets possess more clarity. The sector is “underweight,” he said. The FTSE fell 2.6 percent before 8 AM GMT, following a previous session decline of the largest percentage since March 2009.
Pressure has extended to commodity stocks, causing them to be some of the worst performers. Commodity stock performance is directly correlated with economic growth. Hardest hit were oil stocks, with a 2.9 percent decline in the FTSE integrated oil index. Demand concerns caused Brent crude to fall under $106. John Wood Group, an oil service provider, received an overweight ruling from JP Morgan and saw its shares decline 5.9 percent.
London trading was expected to be volatile in advance of options and futures contracts expiring. The FTSE 100 was on course for a 6.3 percent weekly loss. Since the sell-off started from July to August, the index has declined 18.5 percent. Consumers may want to consolidate debt and begin saving now for the rocky road ahead.
Base rates remaining at 0.5% until 2013 may be all well and good for all the loan junkies that probably read your posts Vincent. What about us guys that have been prudent with our money, are sitting on a lump of cash and are getting a measly 3.14% with ING direct?
Can u lend to someone living in the US
Hi Corey
Thanks for your comment. We are a UK based personal loans and finance information hub. We don’t provide financial products at this time.
Increasing economic fears are leading to more UK people paying off their debts…
As worries increased regarding the forecast for the UK economy, consumers focused on repaying debts during July. Amount owed on overdrafts and personal loans fell to a decade-low £52.2 billion, according to the British Bankers’ Association (BBA). Deposits and savings experienced slowed growth due to low interest rates.
As prices rise, homeowners are using their extra money to pay household expenses and clear mortgages. The money is better spent there than stashed in bank accounts yielding little interest. Thus far in 2011, savings and deposits have only increased by £8.6 billion, compared to £16.3 billion during the same period last year. Home loans debt and other bills are taking priority, even with less cash to spare due to increased living costs.
Having less money left over each month makes things more difficult for those saving a deposit for a home. The higher cost of living has resulted in current homeowners paying down home loans rather than future homeowners taking advantage of low loans APR, said Mortgage Advice Bureau head of lending Brian Murphy. Data in the latest BBA monthly lending report seems to support this.
However, the BBA did report a small increase in mortgage loans for the third consecutive month during July. Home purchase approvals increased to 33,417, higher than the average 30,695 during the previous six months. Remortgages increased 14 percent compared to July 2010, spurred by the buy-to-let market.
Though mortgage levels are trending positively, they are still half of their pre-credit crisis level. Within the past year, lending has declined eight percent, reaching £7.6 billion in July. BBA Statistics Director David Dooks stated that weak mortgage demand from companies and households is reflective of the slow economic growth. During the relatively stagnant mortgage loans market of the past two years, nearly three-quarters of new mortgage lending has come from high street banks.
To continue on the upbeat and bullish thread….
It’s official the UK Trails Leading Economies In Economic Growth guys.
Over the past year, Britain has performed more poorly than all other leading economies in the world aside from earthquake and tsunami-ravaged Japan. Figures recently released by the Organization for Economic Co-operation and Development (OECD) have provided new questions for already-pressured Chancellor George Osborne. Politicians are proposing tax cut-driven stimulus to jump-start the economic recovery.
According to Angela Eagle, MP and Labor party shadow chief secretary to the Treasury, the figures reveal that recovery in Britain was constrained long before the most recent global uncertainty. She believes that the swift and sweeping cuts imposed by Mr. Osborne have increased the vulnerability of Britain. The fact that economies in both the U.S. and the remainder of Europe have also slowed has made Britain look good.
Through the three months ending in July, Britain experienced faster economic growth than France and Germany. Its economy was only slightly weaker than that of the U.S. With global economic growth shrinking to levels characteristic of the UK, many fear a double-dip recession. On Monday, JP Morgan, Bank of America, and Merrill Lynch placed two to five odds that the U.S. would experience one.
Bank of England Monetary Policy Committee member Ben Broadbent recently spoke about the weakened outlook for domestic and global growth. He commented that prospects are bleaker than are expected during an economic recovery. The OECD reports that for four straight quarters, its 34 member states have experienced slowing growth.
From January through June, OECD member growth rate was only 1.6 percent, the sharpest decline since the recession ended. For 12 months to June, UK growth was weaker than the major seven nations in the OECD, aside from Japan. UK consumers witness this in the form of increasing inflation and continued availability of cheap loans. Though Britain’s economy is floundering, Morgan Stanley does not believe a recession is on the horizon.
Secret credit checks, ummm?
Banks Warn Families To Cut Back To Avoid Losing Home
On Tuesday, officials from two UK banks owned by taxpayers revealed that they are conducting secret credit checks. Their goal is to identify the highest risk customers. Over 30,000 mortgage holders who are struggling to pay their debts may be told to reduce spending in order to keep their homes. An increase in the interest rate could turn financial difficulties into financial nightmares for these folks.
According to experts, it is normal for a bank to conduct a credit check when people apply for home loans. The unique aspect of this situation is that the individuals have already been approved for a mortgage. During the credit crisis, Northern Rock and Bradford & Bingley banks were nationalized and their customers are now receiving the warning.
UK Asset Revolution (UKAR), the state-owned bank responsible for recovering the £48 billion investment by the government, will be making the phone calls. Approximately 2,000 customers will be contacted each week during the coming months. A UKAR representative will inform each customer how to manage finances should the interest rate increase from its historically low 0.5 percent.
Richard Banks, chief executive of UKAR, explained that some people will not be able to handle an increase in interest rates. For others, a solution is available and it requires prioritizing debts. Mortgage loans are more important than a Sky TV subscription or purchasing the latest in mobile technology. Customers must be educated to change their behavior when it comes to managing finances, he stated.
Those with variable mortgage loans APR may only be considering the current rate, which is quite nice. Even a small increase could have many of them falling behind with monthly expenses including the mortgage. The phone calls are designed to prevent this from happening and ensure that consumers budget and spend wisely in the future.
When talking about credit repair, do you have any suggestions on what is the fastest way to get it fix or do you know anyone who could help me. I am willing to provide details about all my debt.
Hi again
I posted here before, but it look like it’s getting more active now.
Anyway…
Move to Scotland guys!!! Scotland is Making UK Housing More Affordable!
Housing in Scotland has become much more affordable in recent years. Mortgage loans APR have declined during the past four years, resulting in an appealing housing market. Four years ago, the Bank of Scotland reported that home loans represented over 35 percent of disposable earnings. Today, homeowners spend an average of less than 25 percent.
Today, mortgage payments as a percentage of average earnings account for less in Scotland than any other place within the UK. Bank of Scotland Housing Economist Martin Ellis said mortgage payments in proportion to average earnings are similar to 2003-levels. In stark contrast are the residents of the Southeast of England and London, who spend over 35 percent of monthly income on mortgage loans.
Reduced loans APR and lower prices on homes have made housing much more affordable since 2007, said Mr. Ellis. With a mortgage payment to average earnings ratio well below the average over the long-term, residents of Scotland are finding homeownership more appealing. Since these low rates will be around for awhile, affordability should persist over the short-term.
As the economy slowly improves, cheap home loans should lead to increased housing demand. That, despite pressures from higher taxes, relatively high inflation, and weakened earnings growth, is a very positive thing. Residents of Scotland should research the loans cheapest to them based on their credit score and amount being borrowed. It is a great time for mortgage holders to consider a remortgage with a low interest rate and extended payoff period.
Lenders in Scotland are responding to the poor economy in an example to other countries in the UK. With low APRs, Scottish mortgages enable homeowners to spend more money improving their homes than living in them. More affordable mortgages also enable them to more easily cover living expenses in the event of job loss.
p.s. I don’t work for the Scottish government!:)
Hi Dan
Thanks for your great post:) This should be interesting to a few people out there….
Mortgage arrears figure lowest in three years….
New statistics from the Financial Services Authority (FSA) indicate a decline in the number of mortgage holders in arrears. During the three months ending in July, the figure decreased by one percent. This is good news in an otherwise horrible economy. It seems that many people have managed to consolidate expenses enough to keep up with housing payments.
At the end of June, 332,700 UK homeowners were in arrears with mortgage loans. This six percent annualized decrease equates to just 2.81 percent of UK residential loans in arrears. It is the lowest percentage in three years and one that surprises many experts. Though there was minimal change in the number of new cases during the past quarter, the figure of 35,700 is four percent lower than that of second quarter 2010.
During the three months through the end of June, the FSA reported an 11 percent increase in new advances to £37 billion. However, no annual growth was experienced. More than 59 percent of new advances were for home purchases. The proportion of new loans with a loan-to-value ratio exceeding 90 percent was small, falling under two percent.
Since the end of 2008, the proportion of mortgages to individuals with poor credit has been below one percent. During the three months to July, it changed little from the period before, coming in at 0.4 percent. Either people with poor credit are deterred from applying due to stringent lending standards or lenders are continuing to issue many rejections.
Remortgages now represent a smaller proportion of all new lending, decreasing from 38 to 34 percent between first and second quarter 2011. However, the figure is still higher than the 30 percent of one year earlier.
Mortgage values declined during the quarter to £12.3 billion. However, they are markedly higher than the second quarter 2010 figure of £11.1 billion.
Hi guys
Cheap mortgages now reaching the market it would seem…
On Tuesday, UK residents received a major incentive to become homeowners. A new influx of cheap mortgage loans hit the market, with the always-appealing 90 percent loans among them. The Post Office has now entered the competition to become one of the biggest lenders in Britain. It announced its largest reduction in loans APR, slashing rates from 5.99 to 4.75 percent.
Homebuyers need only a ten percent deposit to take advantage of a three-year, 4.75 percent rate with the Post Office. For a five-year mortgage, they may qualify for a rate of 4.99 percent. This is a welcome change from the home loan deposits of up to 25 percent required immediately after the credit crisis. Experts report that the home lending market will remain competitive over the near term, with the record low 0.5 percent base interest rate continuing.
The Bank of England continues to struggle with the financial crunch, causing fears regarding interest rate increases to subside. The Council of Mortgage Lenders added to the good news yesterday when it announced that mortgage borrowing increased ten percent from last year. The £13.4 billion figure is the highest realized since July 2009.
This month, Chelsea, Leeds Building Society, HSBC, Nationwide, and now, the Post Office, have reduced home loan interest rates. The Post office began lending on a trial basis in 2007. It now seems to be fully committed to home lending, based on its offerings of a 90 percent loan and other revamped mortgages.
Andrew Strutt with Trinity Financial Group reported that though mortgage rates seem to decline every few days, they will not remain this low forever. Homebuyers are now in an excellent position and should consider applying for one of these loans. Those who already hold mortgages have reason to refinance. Even first-time buyers are finding lower deposits and cheaper loans than in the past.
Here’s some more upbeat personal financing news:)
Cheap Financing From Nationwide For Personal Use
Nationwide Building Society recently reduced its personal loan rate to 6.3 percent APR for customers with a FlexAccount. In a bid to offer loans cheapest to customers, Nationwide slashed its rate after M&M Money released a 6.4 percent personal loan last week. Nationwide has never offered such a low rate and even new customers can take advantage of it.
Individuals new to Nationwide will pay a 6.4 percent APR if they obtain the loan using an online aggregator. These cheap loans are available for between £7,500 and £14,999 and with repayment terms as long as five years (60 months). Nationwide personal loan head Paul Wootton commented that the building society receives many personal loan applications during September.
New car registrations begin in September and with cheap loans from Nationwide, car buyers may be able to afford their dream car. Money from a personal loan may also be used for other personal purchases like electronics, boats, or recreational vehicles. Consumers often apply for a personal loan when they do not have enough cash to make a desired purchase. The low rates make this financing a preferred choice to credit cards when the balance will not immediately be repaid in full.
Online loan aggregator sites allow consumers to compare lenders to find the best deal. Comparison tables make it easy to view the features, terms, and conditions of each loan. Some sites also offer credit card comparisons with an online application feature. These features allow borrowers to get all financing in one place.
To find the loans cheapest for them, individuals should be aware of their credit score. Unless they are applying for no credit check loans, credit will be a major determinant of interest rate. Having a good score will qualify individuals for the lowest loans APR. Whether they want to consolidate debt or purchase something, a personal loan may be the answer.
Jim
That’s interesting and I’m sure some of our readers may well find it in their interest to contact Nationwide while this offer is running.
Can someone who is on DSS get a loan from a proper company. Im woried that I could end up getting fined and lose my benefets. If i did I would be screwed and I have tried to get a job but there is nothing about for me with my skils.
Hi Chay
This is a good question. So loans for people with DSS benefits. Is this possible?
The Department of Social Security offers financial assistance to individuals suffering from mental or physical disabilities. However, this is often not enough money for someone who is unable to work. An individual on DSS benefits can find special lending programs designed for people who are blind, deaf, or have a physical handicap, learning disability, cerebral palsy, or other conditions.
These are short-term payday loans offering between £50 and £1,500 to people who have been on DSS benefits for six months or more. Repayment term is between two weeks and 31 days. Since they are unsecured, no collateral or co-applicant is necessary. Individuals who have poor credit may apply for this financing but will be charged a slightly higher rate of interest.
Applicants must be at least 18 years old and permanent residents of the UK with a valid Social Security number. A valid and active UK checking account is also required and the balance should be at least £500. Anyone applying for one of these loans must be able to prove ability to repay the money. A post-dated check representing the total of the principal, interest, and fees is provided to the lender as security.
Lenders require only a loan application, with no additional documentation or verification needed. Compared to conventional financing, the loans APR is higher, which makes quick repayment important. To find the best interest rate, individuals should review offers from various payday lenders and select a reputable provider offering the lowest rate.
After the online application is completed and submitted electronically, the lender verifies the information and makes a decision. The best lenders offer round-the-clock processing, quote provision, and answers to consumer questions. People on DSS benefits should explore this source of cash because though it is more expensive and designed only for the short-term, it may prove beneficial.
The Resurgence Of The 100 Percent Mortgage?
We don’t tend to discuss mortgages much here but the 100 percent mortgage seems to be back…so well worth mentioniong I think.
One bank has done the unthinkable- it has begun offering a 100 percent loan to value mortgage. Aldermore Bank is now lending the full value of property without requiring homebuyers to place a cash deposit. Deals like this were once plentiful but the financial crisis caused them to all but disappear.
Aldermore is a small bank founded in 2009 and is the first UK lender to offer 100 percent home loans since the financial crisis. There is one catch to this seemingly great deal- the borrower must provide a guarantor willing to support the financing. By support, we mean financially, as 25 percent of the loan amount must be secured by the property of the guarantor.
Guarantors are not asked to provide cash up front. However, if the property of the borrower is eventually repossessed, the guarantor is liable for a shortfall resulting from this sale. This makes it important that guarantors be confident that those they are helping will be able to repay the loans. In many cases, a parent, guardian, or grandparent serves as the guarantor.
Most of the largest High Street lenders require a deposit of at least 10 percent. Hard-hit Northern Rock Bank is offering ten percent deposit mortgages designed for first-time homebuyers. There are some banks that currently offer better deals for deposits. Lloyds Banking Group has a few mortgages that feature a deposit as low as five percent.
Despite bearing the blame for the property market decline, a one hundred percent mortgage is not always a bad thing because borrowers receive the ability to own property. At the same time, they must realize the risks, which include negative equity. Should housing prices decline, the mortgage will exceed the value of the property and prevent the homeowner from selling up moving.
Interesting but big trouble ahead potentially for the banks. as the U.S. And Britain are expected to go head-to-head regarding “liar loans”.
Some of the largest banks in Britain are expected to be sued by the U.S. Federal Housing Finance Agency (FHFA) regarding their role in the U.S. subprime mortgage debacle. Multibillion dollar lawsuits against more than a dozen of the top banks in the world are expected to be filed in U.S. federal court. It is likely that Royal Bank of Scotland, HSBC, and Barclays will be on the receiving end.
The FHFA, an arm of the U.S. government, is alleging that these and other banks violated securities laws when they sold mortgage securities during the housing bubble peak. The FHFA regulates mortgage financing giants Freddie Mac and Fannie Mae. It alleges that several large banks sold home loans to millions of Americans with questionable income levels or poor credit.
These so-called liar or Ninja loans were bundled by Wall Street and resold as bonds. The loans behind these bonds eventually defaulted, leaving investors with enormous losses. The impact on Freddie and Fannie was £19 billion. Should the lawsuit be successful, it will serve as a precedent for related legal filings from investors throughout the world.
Should the issue reach a global scale, a settlement in the billions of pounds is possible. UK banks are not commenting at this time, instead waiting to see what lawsuits are filed. Insiders report that legal teams for the banks are already working on their defense. To date, no bankers have been incarcerated for playing a role in the mortgage crisis but they are definitely facing increased legal pressure.
As news regarding the lawsuits was released, shares of Bank of America, a U.S. bank on the target list, fell 8.5 percent on the Tokyo stock exchange. RBS and Barclays shares dropped sharply on the London exchange. These are just the first of many effects anticipated from this issue.
Hi,
With regard to the speed of approving and releasing a loan to a customer, your article mentions that this can sometimes be within 24 hours. Would you say this rapidity of approval is the exception rather than the norm?
Hi Chris and thanks for your question.
In short I would say that in most cases approval takes less than 24 hours. However, things have changed a great deal over the last couple of years and credit checking is far more stringent these days. It would be worth ringing up a few providers and asking them directly.
You know what? I tried 6 times but still I get a denied reply from them. Maybe with your suggestion and guidance I can get an approval. I am not dreaming to get big money just a small amount to start a small business.
So much information. Thank you so Vincent for your help both online and one on one advice. Myself and my wife, Joan have been successful in obtaining a short term loan from a high street lender at a great rate, far lower than those advertised on the internet or even on TV. Keep up the good work helping us out who feel our options are limited. Thanks!
Thanks Mark
We are very happy that you were able to secure the finance that you were looking for and are pleased that some of the tips offered here made the process less stressful for both you and your wife.
I’ve read one of your posts about lending money to your friends,it really did taught me a lesson. Since I have the same situation sadly after my friend received the money she wasn’t able to pay me back and now I found myself looking for loan….our friendship isn’t so easy now
Hi Robert I’m inclined to agree with you om this one. Lending money to friends and family or vice-versa can be a minefield.
My pleasure Mark. I’m really pleased that I was able to help you both out.
All the best
Vincent
Is selling off gold a good idea? I need to raise some cash fast and have some soverin rings I’ve had for ages now? They were from argos but could be werth selling?
Hi Carl
Selling gold is very popular right now and you may have noticed some quite prominent ads on TV.
Some high profile sites worth looking at are as follows:
cash4mygold.co.uk/BestPrice
postgoldforcash.com
puregoldbuyers.co.uk/bestprice
cashforyourgold.co.uk/
(Cash for your gold buys all unwanted silver platinum and gold for cash.
Best gold prices per gram guaranteed!)
ukscrapgold.co.uk/
(Sell Scrap Gold and Platinum with UK Scrap Gold Buyers online
effectively and with no problems.)
sellgoldonline.co.uk/
ounces2pounds.co.uk/
cash4mygold.co.uk/
bestpriceforgold.co.uk/
Carl and Vincent…
Here is some further info on selling jewelry for cash to repay debt:
Jewelry is very popular with both men and women. Even the current economy has not tempered our desire for it. Most of us own at least one piece of jewelry, whether it is reasonably priced or expensive. Jewelry is view as an asset and as such, it can provide us with financial help needed in an emergency.
Some lenders offer financing in exchange for our precious jewelry. We turn over the item to them and they provide us with cash. Many of these lenders operate online so it is easy to find them. They purchase all types of jewelry in all conditions, desiring both large and small pieces that are old or new. Even jewelry that is broken or no longer in fashion is fair game.
Once the appropriate lender is found, a free, no obligation online application must be completed. The electronic form requests personal information and details about the jewelry being submitted. A lender representative then contacts the applicant and assigns a monetary value to each piece of jewelry. If the applicant accepts the figure, the jewelry is turned in and the borrower’s bank account is funded with the agreed upon cash figure.
Jewelry owners do not part with their baubles forever when taking out these loans. Once they repay the cash borrowed, they may reclaim the jewelry. This enables the individual to submit the same piece of jewelry several times in exchange for cash needed to consolidate or repay debts or make a necessary purchase.
Many lenders make the transaction very easy by not requiring any paperwork in addition to the loan application. The process is convenient and streamlined so the borrower gets the cash faster. Loan funds can be used for any purpose and the quicker the money is repaid, the sooner the borrower can get the jewelry back.
Hi guys.
I’m in a bit of a sticky situation. I can’t seem to get any credit, I just get turned down. I know I have poor credit history, that is fact. I’m hoping that you might be able to point me in the direction of someone who might be able to help me get some credit so I can start repairing my rating from my ‘going out and spending money I don’t have’ days. I’m only looking for £100 short-term to get me through the week. I’m totally skint!
Hi Alex
Thanks for your comment.
You may or may not agree with the payday loans concept but there is a new company on the block attempting to change people perceptions…
Here is the lowdown for you and this will probably be of interest to quite a few other people who frequent this site for bad credit finance type information.
It is interesting to note the demand for payday loans in the London area too.
They seem to be out to challenge Wonga too….
InstantLoansDirect, a major UK instant loan Web site, captured statistics regarding applicants on its site.
These revealed that Londoners are those who most frequently apply for payday loans than other residents of the UK. The inference is that people in London spend their paychecks quicker than those residing in other UK countries.
Statistics previously captured by the lender indicated that people with middle-level incomes rely most on payday lending for financing. Since this Web site came online in March, approximately 75,000 UK residents have become customers.
After London, the cities they are most likely to hail from include Manchester, Leeds, Birmingham, Glasgow, Liverpool, Edinburgh, Newcastle, Sheffield, and Portsmouth.
The company also investigated the cities of residence for customers requesting the largest sums of money.
This honor fell to residents of Birmingham, who requested an average of £300 each. Interestingly enough, this figure is the highest amount the company provides to first-time borrowers.
It seems that though Londoners represent the majority of the customer base, they request less money.
Century-old lender Harvey and Thompson serves as a company partner. The interest rate for its payday loans are approximately 90 percent lower than that offered by sites like Wonga. The company is trying to change the stereotype that payday lending is expensive.
The common misperception is that low earners are preyed upon by these lenders, which the company has shown is not true.
InstantLoansDirect founder Giles Coutts stated that individuals who are well off and have solid budgets are not exempt from needing to borrow money.
Just one unexpected expense, such as a car repair, may require that they arrange financing. In emergencies like these, instant loans such as those offered by his company are often a sensible and cost-effective option.
For each £100 borrowed, InstantLoansDirect charges 50 pence daily in interest.
It might be worth contacting them Alex. I’d be interested to hear how you get on too:)
Hi Alex
Have you tried Credit Expert’s free trial or downloded your credit file recently?
I am self employed and I don’t know the process on filing for one. I wish to get a car loan and I would want to know how long will it take for someone like me to that kind of loan or do I have a chance on getting one?
Bad credit history secured loans is what I find very interesting because I do have a lot of missed payments and late payments but among the three you’ve mentioned on one of your page Nemo Personal Finance, Blackhorse Personal Finance, Link Finance which do you think I should try first?
Hi Maria
The best thing you can do is compare the rates of interest side by side and the repayment time frame and see if you are comfortable with them. However, I would always recommend speaking on the phone to all 3 to really get a feel for what they might be able to offer you.
Hi there wonder if you can help, Im 23 and looking to get married in June however i need a loan of 3000 to cover this this wouldnt be a problem except i am a student, I am Scottish and the Course im on does not come under the criteria for a student bank account. It looks as if no one caters for students i have a bursary income of 600 per month and my partner has around the same, I cannot find a co-signer anywhere is there anyway you can help? Plus my credit isnt great.
Thanks
I am also interested to know more on where to get fast release loan? I need that to start all over again to straighten things up with my life. And if you would ask me about my credit standing then I have to say it’s not in a good condition.
Hi James
You can get an unsecured loan pretty quickly but you would need to make an application. It is not as easy as it it used to be to get personal finance with very bad credit, but each case is looked upon on it’s merits. Please feel free to submit your requiremnts and we will do our best to match you with an appropriate lender.
To be honest, I need assistance because I don’t know much about loans and types of loans. I don’t have a work as of the moment would that matter?
Hi Sander
Please feel free to read through this page as it contains a great deal of information relating to uk loans and bad credit loans in General. However, you should be aware that not many lenders are willing to take the risk of lending to unemployed people right now
Do you have any suggestions? if some companies are calling me already, but I still need to get a loan fast. I hope to get a no credit check loan since I need an immediate way to get cash for my daughter.
Hi Valerie
The last thing you want is to feel pressurised by too many comapanies calling you at the same time.
Did you contact these companies at some point in time and now they are following up on your initial enquiry?
I suggest you have all the facts written down in front of you. For example, how much do you want to borrow and over what period of time?
Are you a homeowner or not and are you currently in full-time employment? When a company rings you up get as much information as possible on them and what their interest rates are over time etc. You are then in a stronger position to decide which company to apply for a loan with.
If you feel that you are not happy with the answers given to you then feel free to contact us and we’ll see if we can offer a more suitable solution.
I wish you all the best.
I would agree that in our current situation in the country it’s really hard to find one. I myself need some information to where I can get this type of loan.
Sharon
Hi Sharon, yes it is quite difficult to get a no credit check loan right now and many people are not willing to go down the payday loan route as the interest rates are high.
I just read all the comments of other people but I want to make a follow up on a list, where I can list it down to personally go to their offices. Do you have a list where you know that the process is faster than the usual?
I am planning on a home improvements loan and I am afraid to get one but I need one. I know I may sound a bit confusing but my purpose on putting a comment in here is to get any advice.
Hi everyone,
Some significant news over the last few days…even for those worried about the impact of credit checks.
Nationwide has slashed personal loan rates to 6.2 Percent.
On Tuesday, Nationwide reduced its personal loans APR representative to a mere 6.2 percent. Not only is this the lowest rate the building society has ever offered, it is the lowest interest rate for personal loans in the UK. Only Nationwide FlexAccount customers using this as their main account are entitled to this excellent deal.
The rate is being offered for loan terms of up to five years and amounts ranging from £7,500 to £14,999. Consumers may apply for a loan at a Nationwide branch, on the telephone, or online through a loan aggregator. Those who are not currently Nationwide account holders can still get a great deal on a loan. The rate they are currently being offered is 6.3 percent APR representative.
People in need of loans cheapest on the market must act quickly because these great rates are only available until December 01, 2011. Individuals who are unsure whether they will qualify for the best loan rates should request a soft quote when applying for a personal loan with Nationwide. This enables them to find the best deal without a credit score inquiry.
Graham Pilkington, head of personal loans at Nationwide, stated that his company continues to stay competitive by beating the loans APR offered by high street banks and supermarkets. He pointed to the current price sensitivity of the market for personal loans. With the holidays right around the corner, this low rate is ideal for people trying to make home improvements, purchase a new automobile, or consolidate debt, he said.
A personal loan is a flexible financial tool that can replace expensive debt. Consumers often use this financing instead of a high interest car loan offered by a dealer. Using money from a personal loan to pay off credit card balances and consolidate multiple debts into one can also reduce total interest paid.
++New Research Reveals That Payday Loans Are Contributing To UK Debt++
Debt Advice Foundation (DAF), a debt charity, recently polled a sampling of UK consumers struggling with debt. According to 41 percent of respondents, high interest payday loans are to blame for their financial issues. Within the past year, Internet searches for this lending have doubled, indicating rapid growth within this sector.
This survey comes only weeks after Which? Money discovered that poor practices are widespread amongst payday loan companies. Some lenders studied offered larger payday loans each month and others offered deferred repayment in exchange for very high monthly interest. One major lender did not even have a consumer credit license.
According to the DAF research, one in four people used payday lending to purchase household essentials like food. Repaying other loans debt was the reason 44 percent of respondents took a payday loan. Nearly half of payday lending customers said they were not fully informed regarding the interest rate and total repayment amount. DAF member David Rodger commented that while lenders are quick to say that payday loans APR is not an appropriate measure, the rate can turn a small debt into a large one very quickly.
DAF is also concerned that these no credit check loans could lead people to accumulate an unaffordable amount of debt. Mr. Rodger said lenders should be required to inform credit reference agencies when someone takes a payday loan. They should also verify the amount of outstanding liabilities held by an applicant.
The current UK lending market does not cater to many low earners. Payday lenders are targeting this population and other people who do not qualify for mainstream lending. Martyn Saville, a debt expert with Which?, stated that many consumers are made vulnerable to unmanageable debt due to the poor practice of some payday lenders. He recommends they seek advice from a free organization like National Debtline.
UK Hits Seven-Month High For Unsecured Borrowing!
From August to September, Brits went on a borrowing frenzy, causing lending via credit cards and personal loans to increase £629 million. The Bank of England recently release this sobering information, noting that unsecured lending hit its seven-month high during September. Unsecured borrowing stood at £208.6 billion as of the end of September. The increase is substantial, considering that the change in unsecured lending from July to August was just £478 million.
IHS Global Insight chief UK economist Howard Archer attributed the most recent change to an increase in “stressed borrowing.” He noted that more people must borrow money to finance their spending. A restrictive fiscal policy, little growth in wages, and increased inflation have put the squeeze on consumer purchasing power. To top it off, more UK workers are losing their jobs, he said. Individuals who are most vulnerable from a financial perspective have been disproportionately affected by VAT, revealed the Office for National Statistics.
According to Mr. Archer, all is not bleak because this unsecured lending figure is actually very low compared to previous levels. All indicators point to limited consumer desire to take on additional borrowing. In addition, many consumers are taking steps to reduce their debt. Decreasing consumer confidence has caused additional concerns regarding employment and economic forecasts.
Data revealed by the Office for National Statistics showed that the poorest one-fifth of households in the UK spent a greater percent of money on VAT-applicable discretionary goods and services during 2009-2010 than in 1986. During 2009-2010, an average of 55 percent of weekly spending went toward VATable items, versus 45 percent during 1986.The poorest one-fifth of UK households now pay more in VAT as percent of disposable income than the wealthiest one-fifth. The information did not include the effects of the 2.5 percent VAT increase that went into effect in early 2011.
Poorer households now spend 250 percent more, on average, on holidays abroad, cars, dining out, photographic equipment, and audio/visual items than they did in 1986. In the richest households, spending for these items has increased only 20 percent, on average. David Breger with the chartered accounting firm HW Fisher & Company stated that VAT contains a “fundamental inequality.” He noted the need for the government to consider its overall effects.
Mr. Breger noted that VAT is not as much of an issue when the economy is strong. Only during times like the current ones, when the economy is very weak, does the effect VAT has on household incomes become very noticeable. The magnifying effect is concerning because individuals who are least able to afford the tariff are subjected to more of it, increasing the likelihood they will slip into debt.
Other data released by the Bank of England illustrated a decline in mortgage approvals from August to September, though the overall value remained level. In addition, the number of remortgage loans approved during this time increased slightly. Still, some experts are keeping an eye on the figures in order to identify the beginning of any trends.
Hi
I know its personal but I really am considerin getting a boob job and wondered if I can get a loan to cover this kind of thing from you?:)
Cheers hopefully
Clare
Hi Claire
Cosmetic procedures can be paid for with an unsecured personal loan. Please go ahead and make an application and we will notify you asap if a finance package is possible at this time.
Personal Insolvencies Drop In UK, Business Struggles Continue…
The latest data released by the Insolvency Service revealed a slight decrease in personal bankruptcies in Wales and England during third quarter 2011. The number of individuals declaring bankruptcy fell to 30,219, a decrease of approximately 300 from the second quarter. For four consecutive quarters, the number of personal insolvencies has hovered around 30,000.
Though any decrease is positive news, most analysts think these figures are misleading. They believe that individuals, households, and even businesses are still struggling to remain solvent. HW Fisher & Company insolvency partner Brian Johnson said that the figures mask the enormous amount of pressure within the economy. This situation is especially painful for businesses, which have been experiencing it for several years. For many small and medium enterprises in the UK, “it’s like being in a slow motion car crash,” he said.
The Insolvency Service data showed a small increase in the number of businesses becoming insolvent. During third quarter 2011, a two percent rise increased the figure to 1,253. The number of businesses going bankrupt has increased ten percent since last year. With the economy still on very shaky ground, a dramatic turnaround is not expected in the near future. Many business owners are having a hard time qualifying for loans bank offered, shortening their expected lifetime.
Personal insolvencies have decreased 11 percent since third quarter 2010.Though bankruptcies decreased, the number of IVAs increased from 12,143 to 13,048 from the second to third quarter of 2011. Louise Britton, a partner on the Deloitte Contentious Insolvency team attributes this to increased collaboration between debtors and creditors regarding formalized debt repayment processes. Both parties are doing whatever they can to prevent the affected individual from having to file bankruptcy.
Official insolvency data is not required to understand that more people are in severe financial duress. Low wage growth, redundancies, and inflation are driving more people into debt. Many are only able to pay regular expenses with the help of costly financing like payday loans. Though this may help them get by for a while, it can actually worsen the financial situation in the end. Experts recommend that instead of taking on more debt, consumers consolidate the debt they have into one loan with a low interest rate.
Every personal insolvency is a result of a personal crisis, said Sarah Hamilton-Fairley, CEO of StartHere, an independent social enterprise. With the right support, she said, this difficult situation can be made much easier. Among those willing to help are the Consumer Credit Counseling Service and the Citizens Advice Bureau. Chris Nuttig, KPMG director of personal insolvency, advised that individuals facing financial issues consult with creditors in the early stages of their situation.
By getting professional advice early on regarding their options, debtors can address their situation before it worsens. Cheap loans are available- consumers just need to learn where to look for them and how to qualify. There is an art to consolidating debt and the experts explain how to do it. Following their advice can help avoid a bankruptcy filing.
New Credit Scoring Tools From Equifax And FICO
The predictive analytics agency FICO and credit reporting firm Equifax are collaborating to develop new UK market credit scoring analytics.
Credit card providers will soon use these tools to determine whether to approve a card application. The goal is to help providers reduce losses that result when cardholders are unable to repay debts.
One of the new analytics will assess the ability of the applicant to handle additional debt. This will come in handy with both credit card applications and requests for increased credit limits. Another tool will illustrate how the risk of the individual would change under various economic conditions. The two entities recognize that external factors often affect repayment ability.
Equifax UK Managing Director Shawn Holtzclaw called the new scores a “breakthrough for the UK” that should help lenders to sustain profits, grow, and promote responsible lending.
The slow economic recovery has squeezed British consumers with debt obligations, reported Mike Gordon, FICO VP and Managing Director for Europe. He hopes that the new analytics will benefit these consumers as well as lenders and the overall economy.
Lenders like HSBC seem to be enthusiastic about the new concept, which will drive credit quality standards higher. Consumers will benefit through more responsible borrowing, which should decrease debt levels.
Lenders will be able to spot candidates for bad credit credit cards more quickly. They may also be more included to provide better deals to less risky consumers. Individuals with a good credit record may find better rates when comparing cards.
Even holders of credit cards for bad credit may benefit from the new analytics. They will be classified properly from the start so they are not tempted with credit limits that encourage excessive spending.
Using bad credit cards, UK consumers can get themselves out of debt and repair their credit score in order to qualify for lower interest rates.
Even though I am a British Citizen I live in the Philippines, and your on-line applications,
always reject my address most of the time including postal code, and telephone number
so what should I do?
I can send you a copy of my Passport if required!
Please advise.
Kind regards
Richard
Richard H Dagger
Morning Side Heights
KM 4, Bajada
Davao City
Republic of Philippines 8000
Tel: 09474157690
Hello Richard
I’m very sorry but we can only accept applications for people living in the UK. I wish you the very best of luck in securing personal finance.
Hello
I want to apply for a loan and i have a bad credit. I would like someone to contact me to help go through the opions i have got thanks
Hi Tom
We can cater for individuals with bad credit but each case is unique so you would need to fill in our form above. We will do our very best to help you.
please find loan application above
Richard Branson Plans To Enter The Lending Business!
Virgin Group founder Richard Branson plans to add lending to his list of responsibilities. The billionaire entrepreneur recently purchased the British bank Northern Rock and has big plans for the institution.
He wants to offer small loans to poor UK residents. He is urging Wall Street bankers to be altruistic as well by using their large bonuses to help repair the damage they inflicted on the global economy during recent years.
Virgin Group banking arm Virgin Money agreed to pay over £764 million for Northern Rock last month. The troubled financial institution was nationalized in 2008 following a run triggered by the financial crisis.
Branson and his team are brainstorming ways to run the bank differently than the traditional approach. One of his ideas is microcredit-small, low-interest lending to people in poverty, designed to stimulate entrepreneurship- which has been successful in India and Africa.
Microfinance was created by Muhammad Yunus, an economist from Bangladesh, over three decades ago. Yunus won a 2006 Nobel Peace Prize for this offering, which targets women and features a default rate of only a few percent.
Millions in poverty within India, Africa, and Bangladesh have been helped by these tiny loans. Yunus owns the nonprofit Grameen Bank and has expanded its presence to the United States.
Branson said a small investment of two or three hundred dollars started his business career. He pointed out that modern banks will not lend such small amounts. This leaves a large and potentially viable segment of the market with limited financing options.
Virgin Money plans to do something about this by expanding the number of Northern Rock branches in northeast England, which currently number 75.
Banks are not assuming a large enough role in handling the financial crisis aftermath. He feels that bankers should use their bonuses to help others less fortunate. Cash bonuses totaling USD 20.8 billion were paid out by Wall Street in 2010.
The weak trading environment is expected to decrease this figure by up to 30 percent for 2011. Despite this, the number will still be huge and has lead to the U.S. Occupy Wall Street movement, which highlights economic inequality and has spread to other parts of the world.
According to Branson, “business needs a heart,” something it has not had in the past. While making money is fine, failing to exhibit responsible citizenship is not, said Branson.
He promotes this belief in his latest book, entitled Screw Business as Usual. Branson believes that he and his peers are better able to handle global issues than politicians or social workers and he is issuing a call to action.
Until now, Virgin Money was an Internet-based provider of insurance, credit cards, and savings products. It is now throwing its weight behind Northern Rock in an attempt to improve the financial status of UK residents.
The ability to get small, cheap loans may be all that poor citizens need to better their situation. If Branson’s idea is successful, a huge decline in demand for payday loans could result.
Interesting, I wonder what Mr Branson would make of the following:
Millions Of UK Residents Expected To Use Payday Loans In Upcoming Months….
In what many would say is an unfortunate turn of events, as many as 3.5 million UK residents could be forced to take payday loans in the next six months.
As these individuals struggle to obtain cash needed through the holidays, many will be thrust into the arms of those dubbed “legal loan sharks” by UK financial experts. The change is coming, with a huge increase in demand for these short-term loans already being experienced.
A payday loan is designed to help a person cover expenses until the next paycheck. With loans APR of 4,000 percent or more, this financing can cause huge damage if it is not quickly repaid.
A recent survey by the trade agency for insolvency professionals, R3, revealed the alarming estimate regarding new payday lending customers. It also discovered that many customers use a payday loan to repay other debts, robbing Peter to pay Paul.
According to the R3 survey findings, 60 percent of payday lending customers are women and most of them are 18 to 35 years of age. Nearly half of payday lending customers reported being financially worse off due to taking this short-term loan.
A mere 13 percent reported that payday lending helped them financially. The number of borrowers who can only afford to repay the interest is increasing, according to the survey. These individuals, referred to as “zombie debtors,” are never able to reduce the amount they owe, a very troubling situation.
For payday loan customers who are hanging on by a thread, financially speaking, the situation usually cannot be maintained indefinitely. If their financial circumstances change or interest rates increase, these individuals will be left with few options.
Even more concerning is the fact that professionals like accountants, solicitors, and doctors may be among this group. The self-claimed fastest growing online payday lending firm in Europe, Ferratum UK, counts these individuals among its clients.
Ferratum UK Sales Manager Ian Porter reported that his company is currently being “bombarded with applications.” He noted that the “vast majority” of Ferratum applicants have respectable jobs that pay good salaries.
Customers borrow approximately £50 to £300 and repay it within 45 days at a typical loans APR of 3,113 percent. For a loan of £300, this would equate to a repayment of £444.
Gillian Guy, chief executive of Citizens Advice Bureau, reported that the number of payday loan customers seeking debt advice during first quarter 2011 increased four-fold from the same period in 2009.
According to one study, 60 percent of Brits were concerned about their debt level as of October 2011, a 13 percent increase from July. Most are located in London, the North East, and North West.
Things have reached the attention of the government, which is currently determining what controls should be established for the £2billion annual industry.
Sara Brooks, Consumer Focus financial services director, stated that during the weeks leading to Christmas, many people may turn to payday loans. To help consumers avoid falling into a debt trap, the industry needs more regulation, she remarked.
Yes Steve,
It would appear that UK Payday lenders have received a warning of sorts….
The payday lending industry in Britain is growing quickly but the horizon is not completely positive.
A warning was recently issued by the government, notifying payday lenders that a clampdown on its controversial practices is coming, though relevant new legislation may not be.
Consumer Affairs Minister Ed Davey plans to limit the ability of these lenders to directly collect money from consumer bank accounts.
He also wants to position credit unions as alternate sources for cheap loans of a short-term nature.
A number of consumers with low incomes have recently gravitated to high interest payday loans.
The government is largely viewed as been too lax with payday lenders. Mr. Davey disputed this, saying that the government has taken notice of the issue. He believes that collaboration with payday lenders, not new legislation, is the way to resolve any issues.
Improving the industry code of conduct can accomplish the desired goals, while hastily implemented policies could drive people to use illegal loan sharks.
Mr. Davey recognized that payday loans fill a need for many UK residents. He does not believe that all payday lenders exploit customers who need cash quickly.
However, the media has recently brought some industry practices into the spotlight, forcing the industry to defend itself. DFC Global Corporate Affairs Director Caroline Walton noted that payday loans were an alternative to expensive overdraft fees through banks.
Though many payday loans APR are cheaper than overdrafts, an outcry has arisen that they are too expensive, she said.
Aspects of the payday lending industry that are most harmful to borrowers will be targeted by Mr. Davey. One of them is continuous authority, which gives lenders authorization to deduct payments from borrower bank accounts.
Mr. Davey also believes in some healthy competition and plans to advocate credit unions as payday loan alternatives.
In his opinion, nonprofit lenders such as credit unions can effectively compete in this industry and can expand their reach through collaboration with the Post Office.
According to Ms. Walton, the industry is receptive to becoming more transparent regarding continuous authority.
Though lenders are not likely to cease using this collection method, they are willing to be more forthcoming about other repayment options.
Mr. Davey wants customers to have the ability to cancel a continuous authority arrangement, since some have had issues with the setup in the past.
With a new industry code of conduct, other controversial issues like rollovers could be addressed. With a rollover, only interest is paid during the initial loan period and the principal is rolled over for an additional month.
In the U.S., some states have instituted legislation that limits the number of rollovers that borrowers may use per loan.
Ms. Walton opposes a limitation on rollovers, saying it may force customers into a financial arrangement that is even more undesirable.
A better approach, in her opinion, is for the lender to determine why a borrower is rolling over a loan.
In some cases, the customer may need another form of financial assistance, such as debt management counseling.
CAB Warns Against Payday Loans….
Christmas has come and gone but for many holiday bills remain. People charged up credit cards to purchase gifts and spent more than budgeted for holiday entertaining.
As their finances become stretched to the limit, they begin looking for ways to pay holiday expenses.
Short-term payday loans are one option but the Citizens Advice Bureau (CAB) warns people that these can be dangerous. Though this financing is easy to obtain, it features an interest rate of up to 4,000 percent.
Jim McKenzie is a financial expert from Truro CAB. He noted that families featuring young children are under the most pressure during this time of year. They overuse their debit and credit cards to give children the games and toys advertised on television.
A situation of overspending becomes worse by taking out easily-accessed payday loans that feature a harsh bite in terms of loans APR. Outrageous interest rates mean borrowers repay much more than what they borrowed.
Though Christmas may have been less merry for consumers who stayed within their holiday budget, the new year may be much brighter than for those who overspent. This positive situation may pertain to more than just finances.
Mr. McKenzie reported that CAB Cornwall historically experiences the most inquiries regarding breakdowns in relationships during the post-Christmas period.
Francis Clark LLP financial expert Lucinda Penn stated that the need to use payday loans is often a symptom of a severe financial problem. This type of issue should be resolved in the near term rather than brushed under the carpet.
When people do not have enough money to last until the next month and they borrow from the upcoming month’s budget, the new month will feature additional financial strain. With continued use of payday loans, debt issues are often just around the corner.
For those living in Cornwall, disposable income is less than the average within the UK. Other areas are experiencing similar financial constraints due to expensive housing costs, low wages, high fuel and water costs, and dependency on automobiles for transportation.
Those affected look for ways to make ends meet, including taking on second jobs and using expensive loans. Before long, they have amassed more debt than they can repay.
UK residents who find themselves in financial trouble should seek help as soon as possible. The CAB is committed to helping these consumers get the debt advice and assistance they need.
In additional to CAB, several UK organizations offer their services free of charge, helping consumers to consolidate and eliminate debt. These include the National Debtline, Consumer Credit Counseling Service, and Christians Against Poverty charity.
The CAB Web site alone features a self-help component containing reliable information and frequently asked questions. Consumers can also contact the CAB via telephone or visit one of the over 3,500 locations.
Most bureaus will arrange home visits and some provide services via text, email, Webcam, or online chat. Advice is impartial and confidential and covers much more than debt, extending to topics like housing, employment, discrimination, and benefits.
Payday loans were certainly hot news in 2011 and like them or not look like being a focal pont of a few more news stories in 2012!
i want toget my son a special christmas present as he is always there for me
Hi Susan
Can you please confirn whether you made an application? I hope you had a lovely Christmas.
Do you do loans for people in Scotland? It doesn’t say you do say I thought you could let me know. I wanted a loan toward getting my wife a new car for her job in Dunbarton?
Cheers Nick
Hi Nick
We are pleased to say that we can offer unsecured loans to people currently living in Scotland. Please either use the form above or if you’d prefer, contact us directly with any further questions.
I think that the survice you provide is amazing
Thank you Darren
I’m very pleased that we have been able to assist you and wish you all the best for 2012.
Can i easily get a loand to go to the canaries in february…i still need 400 as I saved up over the end of last year? Can you help me on this?
Hi Kyle
Give us a call today on the number at the top of the page and we’ll see if we can help you out.
I need 100 today and fast for my mate as I promised Id pay and he wants it now!
how do i get the loan from you as quick as possible?
I need quick loan hope they can help.
Hi Claire
Why not call on 020 3106 5850 for a short term loan of up to £1,500
i have a stupidly bad credit score from when i didnt work and in desperate need of a quick loan so i can get driving as i now have a full time job. need help as every were i apply for says no
thankyou
Hi Fiona
We are pleased to say that we have teamed up with a large UK loans provider and can offer short term loans in the region of £100 to £1,500 even if your credit isn’t so good. You are in employment which should be to your advantage. The number to call is: 020 3106 5850
I hope you get the finances you need