Financial environment is not always friendly for the salaried people. That is why they often find it tough to make ends meet. Now the question is what one should do when the financial difficulties occur all of a sudden. Usually, people turn to traditional lenders for help at the time of uncertainty. If you are in a battle with money related problems and reeling on bad credit history, you might be under the stress. It is the time when you cannot rely solely over savings because doing this may affect your future plans. Thus, loan will help you in such circumstances.
How can you figure out whether it is the time to turn to the banks or opt for the loans for bad credit with no guarantor and no fees online? Of course, considering the right option is necessary here. In many ways, private lenders function better than the high street banks.
Here are some factors that you should take into consideration while comparing the policies of traditional lenders with private lending companies:
#1: Traditional Lenders Charge High Rates Of Return But Modern Lenders Do Not.
When you are trying to borrow funds in the form of loans, it is good to turn to online lenders. Traditional lenders have high interest rates and ask for the transaction charges from the borrowers. As a result, you have to repay more than what you have borrowed. On the other hand, modern lending companies serve, comparatively, affordable interest rates without charging extra processing fee.
#2: Banks Need Collateral But Direct Lenders Do Not.
Traditional lenders require you to have a valuable asset under your name. The secured way of borrowing funds has a high risk of losing your property, which in turn increases your stress. On the contrary, online lenders have lenient lending nature and do not have the policy to offer short term loans for bad credit with no guarantor in the exchange of collateral.
#3: Online Lenders Provide Better Customer Service.
It is complicated to keep in touch with your bank once you receive the loan. However, this is not in the case of private lenders. With traditional lending companies, you may experience communication gap even if you are facing difficulties in making repayments. In case, you apply from the online lenders, you will definitely enjoy the proper guidance during and after the application process. In fact, online lenders always keep in touch just to ensure that you will never face any hindrance in future.
#4: Private Lenders Lend throughout UK But Banks Do Not.
Traditional lenders may have embracing app and attractive websites but they refuse to lend anywhere in the UK. They have boundaries and lend only in the particular areas. However, online lenders have provision to lend everywhere in the UK. It does not matter where you are residing as private lending companies come to your rescue anywhere in the UK.
#5: FinTech Lenders Welcome Unemployed Individuals but Banks Do Not.
There is no secret that banks still follow old-fashioned lending norms and want the applicants to have a clean credit score and satisfactory status of monthly income. However, things are different in the case of online lenders, who are ready to loans for unemployed with bad credit on better terms. Apart from this, private lenders are offering you an opportunity to enhance your current financial status with flexible repayment tenure that the banks are unable to do.
The above-mentioned points are enough to describe why private lenders are more helpful than your banks at the time of emergency. Now, you should make yourself prepared for breaking up with your banks and turn to online lenders for the help.