- Emma Parker
- June 29, 2019
Financial life is not easy to handle and for careless persons, it is indeed very challenging. Hope, you are not among them! However, it generally happens to those, who are facing financial struggle for the first time in their life. With not much experience of how to handle it, they troubled a lot and in the end, face grim consequences. But it does not mean that they do not have anything to utilise.
If you have a good research skill and zeal of finding some solution, nothing can be impossible for you. It is because if you do so then you definitely find out something useful for your finances. This is what we will discuss here with taking 12 month payday loans as the example. Before finding out the reasons why you need these loans, we think it is important to mention here that these loans can be applied with no guarantor needed, if you are approaching the direct lenders in UK.
Although there will be many specific reasons to choosing only these options. With our research, we have compiled up a few of them that can also relate with your own purposes. Let us start the discussion:
As a financial backup to your business
Many people do that and you can also use these short term loans for your business purposes. As it stretches for one year, a lot of business related expenses can be covered with the borrowed amount. Increasing the infrastructure, opening up a new branch, bringing new equipment and many more expenses that you can cope up with these funding sources. However, lender may not ask for the purposes but if you explain these reasons, then your chances of guaranteed approval will automatically boost up.
Due to easy-to-repay option
One can say that 12 month payday loans are the extended version of payday loans, which can be completed within a month, and they can come into the category of instalment loan. Thus, one of the major benefits that borrowers get is easy-to-repay the borrowed sum. They have to make the repayments on every month till one year and that may be fixed or flexible depending upon the lender’s policy. It will not put extra burden on your finances and even you can manage it from your monthly budget.
To get better your credit score
Credit score is among the most determining factors of the loan approval. In fact, mainstream lenders are very much strict related to this norm. The direct lenders may be flexible in this regard but still they also maintain it among the major requirements. By considering credit rating as the major factor, there are many people who apply for these instalment loans to get better credit rating for their financial profile. However, it is applicable for both the first time borrowers and persons with low credit scores. They just need to follow the repayments properly to get better numbers to their credit.
Using as funding alternative till finding a new job
Unemployment, just like the bad credit scores, is the major obstacle into the progress of your financial life. Your job defines your social status and no one would like to be called as unemployed. Situations force you to enter into this category, but is there any need of worrying too much? ‘No’ is the answer. 12 month payday loans with no guarantor option seem like a perfect funding alternative till you find out the new job. Lenders allow these loans even if you are getting government benefits. However, loans go till one year but it would be better that you once again become employed as soon as possible, as the repayments have to be done from your end.
Can Interest Rates on 12 Month Payday Loans Worry Me?
Well it depends upon which lender that you are choosing for and the related lending norms. Sometimes, rates may go higher if you are unemployed or having a bad credit score. At the same time, lenders may be flexible to their policies but still they keep them higher. If possible, it would be better to apply with good credit scores or only when you are working somewhere. Otherwise, you should have the guarantor or arrange collateral equivalent to the borrowed sum. These are the best ways to calm down the interest rates a little bit and utilise the loans with not much burden.
There is no reservation that loans are vital to stable the finances but they have to be applied carefully.