The majority of UK borrowers have short-term unsecured loans that they procure without any mortgage; and, most of these find difficult to pay the instalments on time. The personal loans without guarantee have been the preferred choice in the UK since the enforcement of private lending agencies by FCA – Govt. institutions that control different types of financial activities all across the UK. The no guarantor – no mortgage personal loan amount in 2017 touched £200bn figure first time since 2008; each household had £7,400 as the average debt. The Bank of England releases a report in 2007 stating that no guarantor loan amount is increasing @ 7%. Another report released by Money-Super- Market stated that 28% borrowers took no guarantor- no broker personal loan even up to 50% of annual wages, while 10% UK borrowers took debts more than their annual salary. The statistics make clear that majority of UK residents rely on borrowing and the most of them are finding it difficult to repay on time; therefore, the demand of loans for bad credit with no guarantor and no broker is always high all across the UK.

Bad Credit Score – A Hovering Term:

The terms like ‘credit ranking’, ‘credit score’, ‘credit history’, ‘credit report’ etc are surrounded by several myths blindly believed by borrowers whose applications are rejected because of having a poor credit score. The regular banks hardly entertain the borrowers with a bad credit score; it is a fact. Some lenders present the bad credit as a very bad credibility characteristic just to lend at a higher interest rate. In fact, a credit score is not a basic qualification for getting the personal loans from genuine direct lenders in the UK; the numerous advertisements in online lending marketplace for ‘very bad credit loans no guarantor no broker’ underline the lessened importance of bad credit score. For the direct lenders, the person perpetually under the debt but never defaulting in repaying at least minimum amount is a profitable client. All the lenders use different credit score calculators and the results differ; therefore, if the loan application is rejected by one lender, you are free to contact another.

How to Budget the Best with Bad Credit Score:

a budget is telling your money where to go instead of wondering where it went

Don’t worry because of having poor credit score but focus to improve it. Budgeting is a good habit for accumulating assets; 50/20/30 is the time-tested formulae for perfect household budgeting. The 50-20-30 budgeting formulae divides the take-home salary amount into three parts -20% for long-term saving /debt repayment, 30% for lifestyle choices and 50% for regular necessities. When 20% of monthly income is fixed the pay the dues, the credit score improves automatically because of on the time payment.

People Have Learned To Live With Bad Credit Score:

ver bad credit loan uk by british lenders uk company

Not only the UK residents are managing the living expenses in tighter than ever before financial conditions; they continue to manage savings also. The household saving trends from January 2018 to July 2018 show consistent improvement that seems to go in same way up to January 2019. The average credit score has improved from 346 to 380 during 2017-2018 but the improvement is different in different areas. The average credit score in Kingston upon Thames was found the highest while it was the lowest in Sunderland but the direct lenders performed god in both the areas. It means, UK residents have learned to manage their expenses with dependency on borrowing but in parallel, they are cautious in paying on time. Paying higher interest rate for a short period bad credit- no guarantor- personal loan doesn’t drift the borrowers because of having no alternative.

Concluding Note:

The term ‘very bad credit loans no guarantor no broker’ is going to be the most explored term in future also as it is today itself. The no guarantor very bad credit loans from direct lenders without a broker are the preferred choice of British residents because this dependable finance facility is available any time with no involvement of 3rd party. However, the borrower’s ultimate experience depends upon dealing with a right direct lending agency and best-structured approach encompassing optimization, planning and execution.