Reasons Why Banks Reject Applications For Loans In The UK
September 14, 2016
If you have ever applied for a loan from a bank or some other credit facility in the UK, chances are you did it with a fair amount of trepidation. The reason is simple, despite the good odds borrowers are given by loan facilities in the UK, very few people actually get to access the loans, and this is because a lot of the applications get rejected if they do not meet certain criteria. This post details some of the reasons why banks reject applications for loans in the UK.
The bank doesn’t think you can pay back
This is the first and usually the most common reason why banks reject loans in the UK. For any credit facility to hand out money to you, they need to be sure you will pay back the sum and at when due. If for any reason the bank determines you will be unable to repay, rather than risk losing their money, they will rather refuse to give you the loan.
Your presentation was not convincing
No matter how good your facts and figures are on paper, you are going to need to convince a bank manager or loan manager to give you that loan. Loan managers are human beings and need to be convinced. If you are unable to convince them and instead end up alienating them with a terrible presentation, it is very likely your application will be rejected.
Your business plan was not convincing
Conversely, even if your presentation rocked the charts and wowed the panel or the bank manager, if the facts and figures you have on paper are not rocking those same charts, then the chances are high that your application will be denied and the opportunity given to someone else. The reason for this is simple; banks are not charity organizations. They need to be sure that by giving you this loan you will turn in a profit in your business or whatever it is you are applying for and this will result in a profit for them too.
Your business is too risky
The reason why banks are more likely to hand out student loans than business loans is because it is a less risky venture. As a rule, banks in the UK avoid risky ventures and if your reason for applying for the loan is too risky, the bank will likely not grant you that loan.
The underlying reason why banks reject certain applications has to do with profit. If the application is not deemed worthy of turning up profit for the bank, it will be rejected no matter how well it is presented. However, this does not mean that if your loan application is rejected it is the end of the world. You should go back to your drawing board and redraft the application. It is always possible to succeed when you try again. Remember, the banks want to make profits too.
12 Months Loan in UK – A Golden Chance to Effectuate Your Financial Needs
April 9, 2016
Now a days in United Kingdom the 12 months loan strategy is becoming very popular and useful. If your pocket is void and you do not have any alternative way to get hold of proportionate greenback except waiting for the next salary, you can dexterously go for the 12 months loan procedure. A very simple and diaphanous gimmick can help you to get a 12 months loan in UK. Understanding your need, numerous lenders can help you out with certain amount of Euros according to your need.
Whenever you envisage your need to take a 12 month loan, one of the most important questions that arises in your mind is how long you want your reimbursement phrase to be and how could you apply for certain loans. The 12 months loan policy comes under a short term unsecure loan category and some lenders even provide this loan with no credit checks. The loans are available in various amounts starting from £1000 to £10000.You can get a good APR rates from 29% to 89% according to the lender’s strategy and your monetary history. The actual loan amount may differ relying on substantial application minutiae.
Unlike other short term loans, the reimbursement period for 12 months loan is précised and quite straight forward – simple 12 months. The repayment period distinct this particular loan strategy from other short term loans. It more appropriately comes under the category of installment loans or a form of personal loan. It can be secure, unsecure and sometimes it requires a guarantor also.
If you are sure about the fact that you will go for certain loan then you have to be confirm first that what kind of loan you should apply. As 12 months loan offers a long term pledge, with more scheduled repayment structure, the loan amount could be little bit larger. It is best for the people who are holding a fixed and secure income and have an extremely good sense of budget planning. It is better to avoid taking this loan if you are not confident about you income and budget part.
To take a firm decision to avail a 12 months loan firstly you should check the fact how much capitalization you need. In case of a flexi amount, you should opt for a short term loan which will work better for you. However, in case of a larger amount 12 months loan is the best choice for you. Remember one thumb rule strictly, whenever you are applying for a loan the amount should not be so higher that it turn into ‘more than you can chew’. Make sure that you can afford it easily when the time of repayment comes.
Generally the repayment mode will be automated. The certain installment amount will be taken directly from your approved bank account or debit card. It is up to you which mode you choose for repayment. You do not need to pit any extra effort from your side to repay the loan amount.
The 12 months loan strategy is available for urgent disbursement also. If you are a less-than-perfect credit holder, it is really hard to get loan from traditional lenders. In that case, with a higher APR you could easily go for the same loan strategy and you can avid the tension of arranging funds within a very short span.
Sometimes it works for bad credit also. In spite of carrying obstacles like bankruptcy, arrears, CCJ s and IVA, you can get a prompt financial support by availing 12 months loan. The only limitation is you must have a bank account and you should have a regular monthly income. If you meet the mentioned criteria, the 12 month loans is at your doorstep-just step out and explores its dimensions and get a strong financial support easily.
Assess Yourself and Get Rid of Bad Credit Rating
February 14, 2016
We are living in a high-rise socio economic cycle, in which it is very difficult to survive. There are people who are unable to meet their necessities of day to day life. This situation encompasses many people and is characterized by late payment of bills and in many cases default and non-payment. As a result they are awarded a poor credit rating by financial institutions on whom they have defaulted. Let us consider you are one such person. It is important to first calculate the amount of money that you need to clear your bills and settle your financial obligations. This article will be helpful if the amount owing on your financial obligations is not too much and you are willing to pay.
Some common signs of financial debt problems include the following:
- You have zero savings
- Regular credit card payments are equal to minimum
- Ownership of several different credit limits and cards
- Constant increase in the use of credit cards while making minimum payments
- Near to completion or complete usage of credit card limits
- Ignorance of your debt situation
- Withdrawal of cash using credit cards
- Bounced checks
- Constant reminders for debt payments by lenders
- Living from one month’s income to another
This financial bracket identifies a large class of people who need some money to restore their financial obligations to a current state. It is not rare to need more than you earn.
First of all, you will have to calculate, what you have paid and what you have to pay. This way, you could get the figure you will need to get a clean chit. The price of the loan is also a very important factor that impacts your borrowing capabilities and credit rankings. Low interest bearing loans are considered to be good debts and should be paid off in a quicker manner.
To straighten out your problem of bad credit the first important thing that you need to do is to collect all your regular bills and payment records and calculate the cost of this money by using a weighted average rate. This means you will be looking at the average cost of capital in pounds. Most organizational entities carryout similar assessments which help them keep a check of their outflows of money.
Signature loans by banking institutions:
Having a positive credit rating means that you are eligible to be granted regular signature loans offered by banks and financial lending institutions. However, if you have a bad credit rating, you will need to arrange for someone with good credit history to co-sign your loan. Alternatively you can also provide some kind of a valuable for security or collateral to safeguard the bank’s interest and reduce the default risk associated with the loan. Anyone who chooses to acquire a signature bank loan must first research it in a thorough manner and ensure that the bank that you have selected is of good repute and accreditation. Big names with strong organizational backgrounds are more likely to offer better loan products.
By chance, if you couldn’t arrange a person who is willing to co-sign you loan, there are a few financial institutions, who can help you to get a loan of bad credit.