Oftentimes, borrowers need a specific answer regarding borrowing extent. As the decision depends on the lender, getting a direct ‘yes’ or ‘no’ to this question is difficult. Now, if you approach a traditional lender, the chances of borrowing are almost negligible.
They prefer good credit scores that can guarantee 100% repayment. However, the circumstances differ extensively when you reach out to a direct lender. Their terms and conditions align with your financial circumstances.
Therefore, having poor scores is not a disadvantage. These lenders give weightage to factors like affordability. If your financial capability is convincing, you can easily get bad credit loans with no guarantor.
However, it does not mean that you can get whatever amount, like £ 8000. You must follow the process that concerns direct lending. Here, you cannot pick any random amount unless it is available within the offered range.
Besides, you must cross-check whether the amount complements your affordability. If it is a mismatch, the lender might refuse to provide you with funds. You must educate yourself about the steps that can increase the likelihood of getting this amount.
For this reason, you must take a tour of this blog without fail.
Find out about the back-end process in detail
Every borrower tries to recreate the lending process at the back of their mind. This happens when they consider a new loan option. In this case, you are going to try a new way of lending.
This direct lending approach is going to be a new experience for you. It offers a lot more flexibility than traditional lending. Most importantly, you can validate whether getting £ 8000 is possible for you or not.
Take note of the given pointers to assess the likelihood of getting this amount.
1. Pre-qualify to see if it is a suitable amount
You cannot imagine mainstream lenders giving you this opportunity. However, with 1one Finance, you can take advantage of pre-approval. It begins with a simple application procedure.
This is basically to understand the preferences of the borrower. Based on what amount you will select from the given range the lender will make the decision. Here, you do not have to accept what the lender offers.
To make borrowing more convenient for you, the lender proposes a suitable loan range. Your responsibility is to decide which amount is closer to your expectations. Once your application is accepted, the lender will propose the offer.
It will include a loan amount that will be somewhat like the final amount. This is the greatest benefit of pre-approval. If the amount or rates or terms do not suit you, there is an option for you to deny.
Go ahead with this step first so that you can see if the amount is what you need. Otherwise, you can reject it and start creating another application.
2. No damage to credit scores
The above step might have raised a question in your mind. It might be about the effect on credit history. For that, you must know that pre-qualifying is not like actual approval.
It is like a step ahead of the final application procedure. This pre-approval does not need a hard-core investigation of your credit background. This means you do not have to be afraid about having an impact on the credit scores.
The lender will run a soft analysis to check your affordability. The credit report does not reflect such checks. For this reason, you can pre-qualify as many times as possible.
Moreover, the more proposals you can collect the likelihood of getting fair rates increases. Therefore, your poor credit scores cannot prevent you from pre-qualifying. The lender has zero concerns about your credit scores.
3. Manage without providing a guarantor
With direct lenders, you can think of getting loans despite poor scores. There will be no need for you to compensate for this setback by producing a guarantor. As per direct lenders, your financial condition is not pitiful just because you have low credit scores.
They assess your affordability which has nothing to do with your credit scores. It concerns your ongoing financial dealings, your earnings, savings etc. What happened to you in the past cannot decide whether you can repay loans right now.
Only your present financial condition can tell if you can afford loan payments. Thus, the lender does not need the support of any guarantor if your affordability is noteworthy.
On the flip side, if your credit scores are very low, it indicates that your earnings are not also great. In this scenario, the lender cannot feel confident about your financial potential. They might ask for a guarantor to support you if not collateral.
4. No fear of heavy interest rates
Now, you must be wondering if the lender will impose a heavy fee for this favor. Firstly, this is not a favor as the reasons for lending are logical. However, it is a reality that they have the borrowing process quite convenient.
You will be more surprised to know that they do not overburden you for that. They work on providing practical rates that you can afford. If the loan cost does not suit your budget, you will not borrow.
Moreover, they want to make loans affordable for you. This is not possible if the loan price is something you cannot pay for. Again, the lender will focus on your affordability to decide the loan price.
You can make the most out of the pre-approval facility here as well. If loan rates are not suitable, you should not give your consent.
5. Speedy disbursal of funds
The speed of their processing does not align with your credit scores. For them, credit history is not the only decisive factor. Once they process your loan request, you can expect a speedy reply from their end.
All thanks to their processing steps that are brief and practical. After approval, they make sure to transfer loan money to your checking account.
The bottom line
Whether getting a certain amount like £ 8000 is possible with poor scores must be clear to you now. In addition, you must have evaluated where a guarantor might be needed.
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.