Do you know the extent of FinTech boom in the UK? It is enormous and staggering upwards ever since the economic meltdown of 2008. According to a report, investments made between July 2015 and January 2016 in the UK FinTech industry is £3.8billion which is approximately US $5.5 bn.
Despite the stricter borrowing regulations more and more people are resorting to online financial services for their credit hassles. Be it bad credit or low score, borrowing in the UK has never been as convenient today. You can borrow hassle free 12 month loans for bad credit with no guarantor.
With so many players in the market, there is a lot of option available for the borrowers online. You do not always need a guarantor or collateral to avail loans. However the bigger question is how far the support of additional loans helps the bad credit borrowers. Is it possible to leverage bad credit loans for better credit future? Is borrowing with poor score a viable option at first place?
Leveraging online loans for better credit future
Before you search for a bad credit loan review your decision on following parameters:
1. Cost of loans
When you borrow loans with distorted credit repayment history, the lender is likely to quote high interest rate. The high rate is meant to cover the risk associated with your loan application.
It is important to ensure that the loan instalment is affordable one. You can use a loan broker’s assistance to get the free affordability assessment. When you borrow considering the loan affordability you are more likely to repay the loan on time
3. Credit improvement
When you already have multiple red flags in your credit report, you must be careful while choosing the deal. If you seek credit improvement or want to become debt free availing professional assessment of your loan profile is also recommended. You must opt for at least 12 month loans on instalment. A year’s time is good enough to provide you space for building a financial foothold to repay loan.
With high cost and limited resources it would not be a cakewalk to afford an additional funding for everyone. It is import to review your credit situation before you resort to the available funds. A lot of unscrupulous players are also active and you need to be vary of them too. Using professional advice of an authroised broker goes a long hand in helping you avail a safe and affordable deal.
Until you have the requisite knowledge and aptitude to use the right tools, you cannot cut even the smallest of hurdles in your way. The additional influx of cash would help you gain the required traction to move your plans ahead however your financial prudence would go a long way to define the pace of success.