It can often be difficult to know whether a certain type of loan will be the right choice for you. It is worth considering it though and you can do this by working through a number if stages. You will need to find out more about the loan type, think about your needs and then whether that loan type will match up with your specific needs as well as looking into other loan types to see if they match better.

  • What are instalment loans? – an instalment loan is a type of short-term loan. It can be organised quickly and you do not need a good credit rating to get one, although you will need a regular income. The loan will usually be for a few hundred pounds, possibly up to a thousand and is repaid in instalments over a series of months or possibly longer. Different lender will offer different terms with regards to how much is available to borrow and how many repayments you will have to make. The cost of the loans will vary between lenders and the longer you take to repay the more expensive the loans are likely to be.
  • What do I want in a loan?– it is worth considering what you need in a loan. Think about how much money you need to borrow and then how much you can afford to repay and when. You might want the loan to be repaid really quickly but you need to consider whether this is something that you will be able to afford and if it might be better to spread the repayments over a few months. Often it is easy to think that a lump sum repayment will be find as you will have enough salary to cover it. However, it is worth thinking about how you will manage to pay for everything else that you need if you have spent a large part of your income on a loan repayment. For some people that will still be fine, but there will be those that will find it a lot easier if they spread the repayments.
  • Is an instalment loan right for me? – consider whether this type of loan is the right one for you by matching up what you need form a loan with this type of loan. It is worth bearing in mind that lenders may vary a bit, so if one instalment loan does not look to be exactly what you need, then you could find that there is one that will suit you better. You will be wise to take a look at a selection of them and you will then be able to identify what the differences are between them. The main things that you will notice are probably price differences as well as how large repayments are and how long the loans last. If you feel that you will only be able to manage a certain amount each month with regards to a repayment, then it will be necessary to find a loan that will allow you to repay that amount or less.
  • Are any other loans more suitable? – it is also wise to look at other types of loan to see whether they will be more suitable for you. You will find that there are lots of different loans to choose form even if you have a poor credit rating. It is wise to make sure that you know what each of them has to offer and then you will be able to make sure that you are choosing the loan that will suit your needs the best. This is really important as not only could it mean that your loan experience will be better, but it could also mean that you will save money and be more able to make the repayments. It is certainly well worth looking in to as you do not want to have a poor experience or struggle with the repayments.

This might seem like rather a long and laborious process. Often when we need a loan, we are in a rush to get the money that we desperately need. It might therefore feel that it will just take too long to start investigating loan types and thinking about which loan might be the most suitable for us and whether a particular lender will be better than another. However, you could find that if you make a hasty decision your will regret it because you choose an unsuitable loan that is expensive and difficult to repay. There will be options out there that are suitable for your needs and options which are not and if you choose the wrong one you could end up in financial trouble. So, make sure that you do take the time to do this research as it could make a significant difference.

You may have heard about no credit check loans and wonder what they are. You might even be rather confused as the government in the UK does state that all lenders should do a credit check on borrowers. Therefore, you may wonder whether these companies are no heeding advice or whether they are just poorly named.

Poorly named?

It would seem that the loans are actually poorly names as credit checks are carried out. However, the reason for this name is so that people who have a poor credit record need not be worried about applying. With many loans, if you have a poor credit record, you will be turned down for a loan. Then if you do get turned down, this get recorded on your credit record and you are even more likely to be turned down by the next place you apply to. This can lead to it getting harder and harder to borrow money. However, with a ‘no credit check’ loan, they will not use your credit rating as a reason to turn you down. Therefore, that is why the loans are named this way. The lenders hope that it will allow those people that have a poor credit record, to realise that there is a chance that they will be accepted for this loan because they will not be judged based on their credit rating. The credit check is used to check things such as the age, residence and income of the borrower as they will need to be over eighteen, live in the UK and have a regular income.

Types of loan

There are actually quite a few different loan types that fall into the category of no credit check loans. It is good to find out more about each type so that if you are considering this type of loan, you will know which might be the best one for you. A few examples are listed below:

  • Payday loan – this is probably the most well-known. You will borrow a small sum of money (usually a few hundred pounds) which you repay in full when you next get paid. The loan tends to just last a few weeks.
  • Instalment loan – similar to a payday loan but you repay the loan over a series of months (or longer) so that the repayments are easier to manage and the loan will last longer.
  • Guarantor loan – you can borrow larger amounts (usually thousands of pounds) but you nominate a guarantor with a good credit rating who will cover any repayments that you miss.
  • Logbook loan – you use your vehicle as collateral and repay in stages but if you miss a repayment your vehicle could be repossessed and sold to repay the loan.

These are just a few examples and new types of loan are appearing frequently so it is wise to do your own research to find out what is available so that you are aware of what you have to choose from.

Other advantages

These types of loans have other advantages as well as being available for borrowers that have a poor credit record. This could mean that they may also appeal to borrowers that do have a decent credit rating. For example, they are very fast to arrange. This means that if money is needed really quickly then the loan could provide it. This could be quicker than arranging any other type of loan, so it could be better in an emergency that other types. Some no credit check lenders are also available to give out loans outside of normal office hours which can be really useful as well.  You may be able to borrow smaller amounts than with traditional loans which could mean that you will not have to worry about borrowing such a large sum of money. This could be particularly advantageous to anyone that does not like being in debt or does not need to borrow very much money.

It is good to make sure that you know about all of your borrowing options. You never know when you might need to borrow some money and if you can make a choice form all loan options then this will give you a better chance of finding the perfect loan for you. We will not all need the same type of loan and even if we have borrowed before we may have used a different type of loan then. Depending on how much we need, what we need it for and how long for we will choose the relevant loan for us. We have a much better chance of finding the right match loan wise, if we know exactly what loans will be available for us to choose from. It is important to find the right loan as it will mean that we will have a much more positive borrowing experience as a result.