Personal loans in the UK – What you should never do

Little white lies are harmless, right? Not when they are listed on your loan application. Lies on your loan application are not harmless and can be detrimental to your chances of obtaining credit. Different people have different reasons for lying on their loan applications. Some people want to hide a bad credit history, while others do not want to reveal personal information. Still, regardless of the reasons, being a loan liar is not a good practice. It can hurt you and undermine your chances of getting a loan. Unfortunately, loan lying is relatively common in Britain.

Who are the loan liars?

Loan liars come from all walks of life. Men between the ages of 26 and 40 make up two-thirds of those who lie on their loan applications for secured loans, insurance, and credit cards. Of these men, approximately 64 percent of them lie to hide a poor credit history. By contrast, 77 percent of women lie on their loan applications to hide a poor credit history. Of this number, 17 percent use an alias. Of all the loan liars, 10 percent admit to using false documents to support their false claims on loan applications. Also, 9 percent of men and 7 percent of women lie about their status of employment or salary.

Why should you not be a loan liar

Of course, the number one reason to NOT be a loan liar is that it is illegal. Some people don’t care one whit, however, about legalities. That is OK, though, because there are other equally compelling reasons. Consider why you want to get a loan in the first place: to get approved for credit or to get approved for a higher amount of credit. You could be digging yourself into a deeper hole. Suppose you do get that credit or higher limit, now what? How will you make your payments, and what do you have at stake that you could lose? If you lied to obtain a mortgage, you could lose your home. Think about it and consider the ramifications before telling that tale.

What impact do loan liars have on overall debt?

Loan liars play a large part in incurring overall debt, meaning loans that are not repaid. Massive overall debt contributes to higher interest rates for everyone. If you are a part of the problem by contributing to the overall debt, you are part of the reason that interest rates increase. Do you want to be a part of the problem or a part of the solution? It is up to you.

How do you get caught?

More and more companies are catching loan liars before they can do any real damage. How do they do it? Lenders are working together and sharing information, and this is making it much easier to catch loan liars. They are using loan data sharing services that capture the loan liars before they are accepted.

The bottom line, it is just not a good idea to lie on loan. If you do get away with it, you will likely not be able to afford it. If you don’t get away with it, you could face legal problems. It is a no-win situation. Play it safe and tell the truth.

Personal debt consolidation loan − The impact of your credit score

You may have reached a juncture in your life at which you’ve found yourself dealing with ever mounting and more unmanageable debt. You do feel that your debt has become entirely out of control. 

You may be looking for solutions through which you can restore some order to your finances. As you go about looking for answers regarding your debt problem, you likely have come up with many questions along the way. For example, you may have several questions about your debt consolidation loan options. You may be wondering both how your credit score will affect your ability to obtain a personal debt consolidation loan and how your credit score might be improved if you can get a personal debt consolidation loan.

Through this article, you will be provided with an overview of how a personal debt consolidation loan works. You will be presented with information about how a personal debt consolidation loan is impacted by your credit score and, conversely, how a personal debt consolidation loan can impact your credit score.

The Impact of Your Credit Score on Qualifying for a Personal Debt Consolidation Loan

The status of your credit score largely will dictate what type of personal debt consolidation loan you may be able to qualify for in the first instance:

  • A low-interest personal debt consolidation loan
  • A bad credit personal debt consolidation loan

If you maintain a good or excellent credit score, you should be able to find a lender that deals in low-interest personal debt consolidation loan options and opportunities.

On the other hand, if your credit score has fallen from the good or excellent zones, lenders are developing personal debt consolidation loan options for consumers who have started to have difficulties with their credit scores.

The Impact of a Personal Debt Consolidation Loan on Your Credit Score

If you do apply for, qualify for, and obtain a personal debt consolidation loan, you actually will have taken a step that will have you on a course towards improving your credit score and towards cleaning up your credit history. With a personal debt consolidation loan, you will be able to pay off past due accounts. Provided that you make a payment on your debt consolidation loan on time, your credit score will improve a bit every month. Over time, you will end up with a much-improved credit score and a more admirable credit history. As a result, more and more doors will open to you in the future when it comes to matters like finding reasonably priced home mortgage financing or when it comes to purchasing a car without having to spend an arm and a leg an interest attached to an automobile loan.

The best loans for you

Life is like one big roller coaster ride, with its highs and lows, leaving the humankind exhausted and not looking for bumpy ups and downs. The main force driving the workforce and the economy is money, and there are no two minds about it.

At any given point of time, every person, no matter where he is, is thinking about how to earn or make that extra, to meet his demand and that of his families.

The demand is equal to supply only in theoretical terms. The demand and supply of funds are never equal in anybody’s life. To fulfill this deficiency, loans are used or taken. A loan can be defined as the transfer of funds or monetary assets from the borrower to the lender. The opportunity cost of the lender for parting with the resource is termed as the interest. A loan can also be defined as a contract between two people, in which the borrower promises to repay the money taken from the lender along with interest.

The best loan has no fixed and regular definition. It can be explained in layman’s terms, as a loan in which both the parties to the loan contract are happy with the terms of the deal and have a feeling of security. Therefore, what may seem to be the best loan for a borrower X may not be the best loan for borrower Y. Thus best loan varies from person to person and their needs.

The best loan can, however, be distinguished based on the following factors:

Rate of interest

The rate of interest should not be very high. There is a particular cut off rate of interest given by the apex governing body of the country, and no lender is supposed to charge rates higher or lower than it. Hence rates are between the two boundary lines. The best loan will have a rate of interest which is closer to the lower boundary line. A borrower should shop for the rate of interest thoroughly and get the best marginal rate that is easy on his pocket.

Processing time

The best loan should take less time to get processed. Loans which have tons of formalities and consume a monthís time just to get processed are tiring. Once the borrower furnishes the documents, the lending authorities should investigate, verify and process the loan fast, so that the borrower receives the money in time.

Terms of repayment

The best loan should have terms of repayment, which is easy on the borrower. If the amount to be repaid in every instalment is hefty, the borrower will be stressed, and at some point of time or the other, he will have to borrow more to settle of the repayment. Thus, when a borrower is judging a loan, he should keep in mind the repayment amount and compare it with his incoming money sources.

Conclusion

These are the essential points which the borrower should keep in mind so that the loan he chooses gets him the best. The best loan can be shopped for easily, only that it requires a little bit of homework. It is best to compare the deals of many lenders and also read various schemes and programs offered by them. A lot of information can be got from the internet, and it is beneficial. One can also find lenders on the net who give attractive loan offers. The borrower must know what he wants and place his priorities right.

All about the personal loan

The market is full of lenders ready to give personal loans at the most realistic rate of interest and simple terms. A personal loan can be used for anything and everything such as vacation, renovation of a house, an extension of the home, medical purposes and so on. The process of getting a personal loan is straightforward and quick. In personal loan it is not necessary that the borrower has to borrow a huge amount, you can borrow little amount or large amount as per your requirement.

Before availing a personal loan for yourself, you will have to make the right choices like to select between a secured or unsecured personal loan.

What is a secured personal loan?

In case of a secured personal loan, you need to pledge your asset (usually your house) as collateral security. There are other assets of value that you can use as collateral, such as your car, jewellery, office, property, land, etc. With a secured personal loan, you can rest assured that your lender will offer you the cheapest and best possible rates.

What is an unsecured personal loan?

An unsecured personal loan is one that requires no collateral or security for the loan. A simple credit check is performed, and your lender will then contact you and provide with the various options that will allow you to avail of a personal loan. Even those with a bad credit history can get a personal loan. Your lender will perform the necessary credit check and provide various choices from which you can choose the one that best suits your needs.

The personal loan for bad credit with no bank account can also be availed and can be of various types. It can be secured or unsecured, and the fee structure and loan terms may vary according to the kind of loan you are applying for.

Personal loan online

Different websites allow you to browse and compare various options to find the best personal bank loan for you. Being online also facilitates availing personal bank loan from the comfort of your home. You don’t have to travel to bank offices, stand in a long queue and submit piles of documents. All this process can be completed in a few easy steps and within a short period.

The need for privacy and space around every individual is stretching its arm to the optimum level. For this reason, online lenders provide you with extreme security and keep your details private when you apply for a personal loan online.

Best rates for your personal loan

A cheap personal loan is readily available through the offices of the banks and the lenders or the internet. The search engines give a long list of lenders, their rate of interest and a comparative study among all of them. This makes it easy to zero upon a lender with the lowest interest rates. As the name suggests, a cheap personal loan is inexpensive and economical, and it means that the rate of interest attached to the loan is not sky high, and thus soothing to the pockets of the borrower.

Final thoughts

Now, with so many options, you can get a fast personal loan so that you can manage to cope up with all your financial requirements as and when needed and it supports you so that you can be at ease and live happily.

Personal secured loans are those loans that you get by giving the lender an asset of yours as security for the loan amount. Finance for personal secured loans is relatively easy to obtain, as cad credit history hardly matters. This is due to the asset you use as collateral, which acts as security for the lender. The money you get from this type of loan can be used for whatever purpose you wish because it is, after all a personal loan.