If you need money quickly and you don’t have the best credit rating, you may consider asking a loan shark for money. No matter how poor your credit rating, you should never consult a loan shark – below, we explain how you can avoid loan sharks and secure a fair loan deal on your own. Avoiding loan sharks
Loan sharks aren’t regulated by the Financial Conduct Authority (FCA), which means they’re working illegally. They typically offer cash loans without much (if any) paperwork and they charge extremely high-interest rates. You can avoid loan sharks by always choosing an FCA-approved lender, such as those found on NowLoan.co.uk. How to get a fair loan deal
There are many alternatives to loan sharks out there. Here are some ways you can secure a reasonable loan deal without asking a loan shark. Shop around
Even if you urgently need money, don’t just apply for the first loan you find. Compare loans and see which one is a good fit for you. Check things like how much you can borrow, how long you have to pay the money back, and what the interest rate is. Regulated lenders will always charge you far lower interest rates than a loan shark, and you’ll have a fair payment schedule set out in a legal contract. Secured loan
If you’ve got a low credit rating, using an asset as collateral makes you less risky to lenders. This is where secured loans come in. With a secured loan, you can secure an asset, such as a car, against the loan. Remember, though, that if you fail to keep up the loan repayments, you could lose the asset. Unsecured loans
Everyone deserves a chance to improve their credit rating, which is why it’s possible to get a loan without using any assets as collateral. There are many lenders out there who specifically work with higher-risk borrowers. A poor credit score doesn’t mean you should resort to loan sharks or illegal money lenders. Guarantor loans
If you don’t have a good credit rating, a guarantor loan may be an option for you. With a guarantor loan, someone else with a good credit rating guarantees to repay the loan on your behalf. Ask someone you trust if they’d be willing to guarantee a loan for you. Build your credit rating
While you’re shopping around for a loan, work on your credit rating. Check your credit rating and make sure it’s accurate. Correct any errors that may affect your score. Then, make sure you’re keeping up with any existing credit repayments. If you can’t make your repayments, contact your lender and tell them that you’re struggling. They may be able to offer you an alternative payment schedule.
Remember, making some repayments is better than none at all. About NowLoan
At https://www.nowloan.co.uk, you can find the best and cheapest lender most likely to offer you a loan in just a few simple steps. Avoid loan sharks this year – shop around at NowLoan and get a no credit check loan quote today.