The days are no more when people had to depend upon a few loan options, which were from mainstream lenders only. Nowadays, varieties of loan options are accessible when it comes to loans. However, the importance of traditional loan providers is still there.
The complications from those lenders force people to approach their alternatives. Direct lenders in the UK have provided that scope of alternative funding. They have created many loan options with several useful features.
What is the most significant aspect that keeps the hand of direct lenders above their traditional counterparts? It is easy loans approval.
Previously, when traditional lenders existed, people had to fulfil their strict criteria to avail of a loan. They had to collect many documents and then wait for a couple of days or more to seek approval. Even by doing such things, there was no guarantee that approval would come.
Nowadays, direct or online lenders have changed the trends. They have had a significant place in the UK loan marketplace for the last 10 years. They have converted everything related to the loan procedure online, making it easier for everyone to seek loan approval.
Apart from easy loan approval, direct lenders are also preferred for their various loans. In this blog, we will discuss the top 5 loan products that modern-day lenders have gained significance for.
5 Top Most Loans to Borrow from Direct Lenders
If you are not aware much about the direct lending marketplace of the UK, this blog is for you. Given below are the top 5 loans for which you should approach the lenders which are providing loans directly.
- Bad Credit Loans
According to a study, around 75% of people in the UK face bad credit scores. There can be two reasons for this.
- First, they focus more on spending than savings.
- Second, their incomes are insufficient to cope with regular or irregular expenses, so they have to acquire debts.
Due to their increasing numbers, lending companies must develop specific loans like loans for bad credit. These are short-term loans where the lender can consider applications despite poor credit histories. Direct lenders prefer to analyse other factors, particularly the applicant’s income status while analysing their loan applications.
The interest rates will be on the higher side, but LoansEvents may offer you competitive rates if you prove your affordability. You can apply online with little paperwork to follow. Even if you carry a County Court Judgment (CCJ) against your name, you can still get the loan approved.
- No credit check loans
Another product that directs lenders to specialise in is no credit check loan. In fact, it is not a loan product but a facility. Suppose you have applied for a loan for bad credit. Lenders will consider your application, and they will do so by not performing the credit check.
At the same time, you must understand that no lender can offer a loan without a credit check. It is a mandatory process, but unlike mainstream lenders, direct lending firms prefer soft credit analysis. Such a check does not have a negative impact on the aspirants’ credit profiles.
Here are the possible benefits of loans with no credit check:-
- You will get loans on almost guaranteed approval;
- Your credit record will remain intact;
- You have an excellent chance of enhancing your credit score.
- Unsecured personal loans
Despite the differences, some loan products are similar between mainstream and direct lenders. Unsecured loans are indeed one of them. These are the small loans where the borrowers do not need to put collateral against the loan amount.
Given below are some vital features of unsecured personal loans:
- These loans are easy to get as lenders will consider you recent affordability only;
- You can apply for these personal loans with any credit history;
- The interest rates will be higher than secured loans;
Some financial experts suggest applying for such high-interest-rate loans only during financial emergencies. You can get instant funding with no hassle. For the larger funding, you can seek secured loans where collateral becomes mandatory.
- Loans without a guarantor
There is another example where a loan is more like a facility than a product. We are talking about a no guarantor loan. Yes, you do not need a third person to approve the loan in such a loan facility. Instead, you get the loan with your own guarantee, i.e., affordability.
These are also short-term loans and proved ideal during funding urgencies. In fact, such products suit those with lower credit scores more. They often find it difficult to convince someone to be their loan guarantor. With these loans, they can have peace of mind.
How do you get a guaranteed loan with no guarantor? Here are some tricks:
- Keep earning a full-time income as the lender can be convinced that you can repay the loan;
- If possible, you can keep an asset against the loan and secure the repayments;
- Ask for an affordable amount, and do not exceed your earning capacity.
- Start-up business loans
Above are examples of personal loans for which direct lenders can be specialist providers. Still, their assistance also touches the businesses running around the UK and seeking necessary funding.
In particular, you can get start-up business loans from direct lenders. The loan norms are lighter than those of traditional lenders. The most significant aspect is the online loan application.
You do not have to leave your office to opt for a loan as a business owner. Instead, you can submit your loan query at the website of the lender. More loan features are as such:-
- There will be no barriers to poor credit scores as these loans are for every credit status;
- The interest rates will be on the competitive side, making it easier to borrow;
- Loans will come irrespective of your business purpose, as you can use them for any purpose.
Conclusion
In a nutshell, direct lenders in the UK have proved their efficiency when it comes to easy loans approval. There is no doubt that there will be some risks as well but still, advantages are many. At the same time, our purpose is not to demean the traditional lenders. They should be your top priority.
Still, when it is related to alternative funding, direct online lenders should be your preference.
