Poor credit scores? Still, you can get a breakthrough in loan approval
Are you recalling your previous encounter with a traditional lender? It was not good since they disagreed to offer you loan assistance. The biggest reason responsible for this was your credit history.
Having a picture-perfect credit score is mandatory when you consider traditional lenders. Now, fulfilment of this condition cannot be sure about confirmed approval. In fact, 100% acceptance chances are not accessible no matter which lending source you utilise.
This is because genuine lenders should conduct a few quality checks. This is a mandatory procedure that ensures them about your financial capacity. In addition, it tells them whether you can repay the loan amount within the given duration.
Anyone claiming to offer guaranteed approval with no credit check and other confirmations might be a trap. Such a too-good-to-believe loan proposal cannot be a reality. Beware of scams happening all around, as you can be a weak target for them.
Precaution and presence of mind are required to prevent such situations. Now, you might wonder whether getting loan help despite low credit scores is possible or not. Do not despair, as this is very much possible, provided you find the trace of direct lenders.
Various facets of direct lenders must grab your attention without fail.
Helpful pointers for enhancing the approval likelihood
As you already know, straightaway approval can be a trap. Proper validation from your end is necessary, even if you want to go ahead with the option. It would be very good if you could avoid considering such options.
However, do not mistake the offerings of direct lenders as scams. The lending features have been made flexible so that maximum borrowers can benefit from it. You will not be able to find anything unrealistic.
How can you make sure whether it is an authentic loan deal or not? Keep reading!
Think practical for an affordable amount
Since the lender is offering a huge range, you should not jump into applying for whatever amount. If you have bad credit scores and are facing a small cash crunch, getting loans for 10000 pounds is pointless. Although it can solve your problem, it creates an enormous amount of debt that is irrecoverable for you.
It is not advisable and safe to borrow more than your actual requirement. Such a foolish step can only increase your financial burden. Many lenders consider this as irresponsible behaviour and reject the application.
Do not think that they do not assess your financial capability! If they find offering this small amount of loan increases the repayment uncertainty, they will stay back from making such decisions. On the flip side, there is no reason to amplify debts just because an opportunity is there.
It does not take a moment for an opportunity to turn into a nightmare. Therefore, be careful.
Make attempts to improve credit scores
Low credit scores do not mean that the world has ended. It is alright if you are in this phase. Maybe some of your financial decisions bring out negative results.
However, it does not certify that you cannot go back on track. Recovering from an ongoing credit history problem is possible, given you are ready to put in the effort. Now, the credit improvement journey might not be as smooth as you might expect.
You can pursue the following steps to climb up the credit score ladder.
- Save as much money as possible from your current budget
- Prioritize payment of urgent bills
- Keep other outgoings on hold for some time
- Check your credit report from time to time
- Report at once in case you find any incorrect information
- Register yourself in the electoral roll
- Pay utility bills within the due date, etc.
You cannot fake out your efforts, as the lender can easily see your honest attempts. The outcome should say how much effort you have put in. If you are sincere in doing what is needed to upgrade your credit scores, the lender cannot overlook it.
Such attempts establish a reliability factor. In most cases, the loan provider agrees to offer help to poor credit borrowers.
Tackle your recent payments responsibly
Your past credit scores bear a resemblance to your previous financial performance. Although it can help lenders assume whether you are a responsible person or not, it cannot put up a real picture. On the other hand, your ongoing financial transactions can do this.
They analyse your recent financial dealings to assess your affordability. If you are managing the current bill payments without any exertion and no time, you should not face any problems. The loan provider observes this as the most crucial attribute in a borrower.
They give weightage to your affordability, especially when your credit scores are not perfect. They can ignore the past financial transactions that failed. However, the present picture of your finances should be convincing for them, or you cannot get a chance.
Meet the right lender for a fair deal
Now, if you want to enjoy 98.7% approval chances, you should not approach a mainstream lender. They cannot fulfil your requirements as they have strict conditions. If you do not satisfy them, a straightaway rejection is what you should expect.
In this scenario, the best thing for you is to get in touch with a direct lender. They have friendlier terms and conditions than traditional lenders. You can expect 100% co-operation from them.
Fetch free proposals to review rates
The most significant advantage of approaching a direct lender is free quotation. Avail of a customised loan offer from multiple lenders. This is not like getting loans but an offer that lets you have a glimpse of rates, terms and amounts.
When you finally accept an offer, the lender will send the agreement. Once you sign the dotted lines, you can expect the funds transfer to happen. Following it, your checking account will get credited.
No need to worry about credit scores. The lender performs a soft check without leaving any impact on your credit report.
The bottom line
If you are living a life of uncertainty with huge financial problems, you must get a reality check now. Win over your situation without fail.
Ailsa Adam is the Editor-in-Chief and former content head at Hugeloanlender. She has been a valuable member of the content strategy team since 2017 due to her abundant experience in the finance sector. Passionate about helping individuals navigate the world of loans and personal finance, she has dedicated herself to acquiring extensive knowledge on various financial products. Before her role at Hugeloanlender,
Ailsa worked as a seasoned journalist and writer, specialising in creating informative blogs and articles on diverse loan types. She is known for her meticulous research and commitment to delivering accurate and engaging content. She holds a degree in MBA Finance and has a keen interest in creative writing and art.
