In the UK, you can find plenty of typical offline lenders, online lenders, and brokers. Nowadays, availing a loan through the Internet is very easy, but identifying the right direct lender is a tricky task. A lending company should offer quick but legitimate lending services at affordable interest rates without any hidden charges. Taking monetary help from a reliable loan provider is a financial blessing; however, a wrong lender can give you a nightmare experience.
Let us have a look at the top 10 tips to select the best direct lender in the UK:
- Lending Services should be Online
When you fall short on funds, the first thing that comes into your mind is to avail a quick personal loan. For availing a personal financing option from a typical offline lender, you have to stand in queues and submit too many documents. It is a long and tiring procedure. However, the online lenders in the UK allow you to apply for a loan without stepping outside. You can fill the online form anytime anywhere. Moreover, you get the required funds directly into your bank account.
- Choose the Certified One
It is better to take lending services from a fund provider who is authorised by the Financial Conduct Authority (FCA) in the UK. The FCA regulates and supervises the conduct of more than 56,000 financial firms in the UK. Availing a loan from a certified financial company is more reliable and there are fewer chances of frauds. Moreover, the certified ones strive for 100 % customer satisfaction.
- The Quickest One is the Best
Compare the loan approval time of various lenders and choose a provider with the minimal time. Some lending companies approve your funds requirement within 10 minutes of the submitted online form and disburse the funds soon after the approval. Even a few minutes look longer when you immediately need funds. Avoid fund providers who approve the fund request in more than 3 days.
- Say YES to only the Cheapest Option
Availing a personal loan at the cheapest interest rate matters a lot. Even a lower one percent helps you to save hundreds of pounds. People, who avail long-term funds i.e. 5-year tenure, should negotiate for a lower APR with the online loan provider. Check the websites of various fund providers and compare their interest rates. You can use loan calculators for calculating the interest part.
- Consider Only Reliable Reviews & Feedback
Reviews and feedback present on the top loan review websites help you to choose the best direct lender in the UK. Carefully check the ratings and feedback written by various customers. Many fund providers show reviews and feedback on their own websites, but you shouldn’t trust all good words blindly. The video feedback posted by the previous borrowers is more reliable as compared to the posted text feedback.
- The Simplest and the Shortest One is Better
Filling a long and a complicated online loan form is a big NO! The form should be concise and simple. A reliable direct lender in the UK should ask you to fill minimal details only and there shouldn’t be any requirement for attaching supporting documents with the online form. Moreover, the lending company shouldn’t ask you to fax or courier additional documents after the approval.
- Opt for the Guaranteed No Guarantor Loans
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When you are in the mid of a financial crisis, then a guaranteed loan without a guarantor is the best option to avail. You should choose a direct lender who offers you multiple financing options with no guarantors. Moreover, no collateral funds are not risky, as you don’t have to pledge your valuable assets. Unsecured financing options are slightly costly, but come with no risks.
- Say NO to the Hidden Charges
Just dump a lending company if it asks you processing charges, upfront fee, or any kind of risk charges. There shouldn’t be any kind of hidden charges. The availed loan should be free of a pre-closure fee. The terms & conditions should be transparent and you should know about each pound that you pay to the lender. Even a few extra pounds matter in terms of the loan cost.
- Bad-Credit Friendly Lenders are the Best
As the economic situation and employment opportunities in the UK are not stable, most of the borrowers face bad credit issues. Availing a loan despite having a bad credit history is a tough task. However, various top online lenders in the UK offer guaranteed financing options to the bad credit customers. They don’t charge high interest rates, hence are popular among the low credit score customers.
- Choose a Lender Who is more Flexible
Your financial needs vary from a situation to another situation. Some customers want to avail a small amount of funds for a shorter duration and some want to avail a large amount of funds for a longer duration. Most of the borrowers are comfortable in repaying the loan amount in EMIs and some want to pay off the small funds in a lump sum amount. Therefore, the lending services of a direct lender should be flexible and customer-friendly. He or she should offer quick and customised financing options as per the customers’ needs.
Even after availing the funds, you should maintain a good relationship with your loan provider. Repaying on time makes this lending-borrowing relationship successful. Moreover, you stand a good chance to come out of the bad credit issues and improve your credit score.