Why do you prefer a loan from direct lender despite knowing that you will pay higher than availing the same financial help from the mainstream regular bank? The high numbers of UK borrowers don’t approach the mainstream regular banks for getting the small amount short-term financial help because they trust the direct lending agencies more for providing the required financial help on the time.

The easy process with high transparency, no waiting period, no worries for application rejection, no worry for having low credit score, friendly support from lending experts, the direct lender’s zeal to lend are justified reasons to pay little higher for getting quick cash help on the time. As the trust of British households on direct lenders is going stronger day by day, private lending agencies are also innovating new ways to extend the tailor-made loans category. As of today, a leading direct lender in the UK offers specific loan for a specific purpose; here are top eight most sought after direct loans in the UK:       

  1. Quick Loans – These are the short-term small amount personalized loans up the 500 £ provided same day or the latest by the next working day. 
  2. 12 Month Loans – As the name implies, these loans are provided for one year with 12 monthly installments. Because of being the fixed installment of low amount, repaying these loans on the time is easier.
  3. Unsecured Loans – These loans are the ultimate choice for the people looking for small amount cash help for short-term but not having any guarantor or asset to pledge. Pledging assets for a small amount is not a good decision even for saving low amount on the interest rate. 
  4. Small Business Loans – These are the excellent choice for the start-up business and small businesses that often need external financial help to sustain the survival during low season or to face the competition during a high season like organizations Christmas. These are long-term loans provided according to the credibility of the business establishment and the owners both. Credit score plays a crucial role in getting beneficial deals.     
  5. Guaranteed Loans – Many first time borrowers take guaranteed loan term as the loan guaranteed by the third party but these are the debts that are disbursed with guaranteed approval. These are the high-cost loans for short-term available for the bad credit score holders having no guarantor also. Direct lenders dealing in guaranteed loans claim for having the more than 95% approval rate.    
  6. Short Term Loans – These loans are provided for a short period with two to four installments. However, 12 months loans are also considered as the short-term loans. the loan amount is decided according to the personal repaying capability. No fee no guarantor short-term loans are the most sought-after loans in the UK by the common households.
  7. Loans for Unemployed – The unemployment is a curse for every country. Although the unemployment rate in the UK has slipped to 4.3% in 2018 still numbers of British unemployed are too high because of many reasons including personal. These loans are devised to assist the unemployed people to search the job at the earliest without worrying for the regular living; the availed funds are highly useful for traveling for interviews, relocating to high job oriented areas, joining a specific professional training /course etc. 
  8. No Credit Check Loans – The demand for no credit check loans increased high during the last couple of years unexpectedly. It means that more and more people in the UK are losing their control on their pending monthly dues, and in return, they are getting the low credit score with big red marks. The no credit check direct lender doesn’t value much the credit score, so, no credit check loan comes at a high cost because of high-risk involvement.  It is good only for small amount quick cash for short-term. 

The Key Aspects of Personal Borrowing:

Almost 65% of borrowers in the UK, consisting 51% men and 70% women, are not bothered much about the interest rate they are paying over the multiple debts. They are paying the installments for the months being least bothered to come out the private lending trap. They are happy to pay the cost of quick cash help; for example, APR of a small amount no credit check no guarantor Christmas loan may be more than 1000.

Such borrowers come from all British communities – unemployed, students, employed, start-up business owners, retailers etc. Is it not necessary to know the total cost of debt? Is it not just to come out of the private lending trap? Apart from the interest rate, the other aspect of personalized loan is repayment term; longer repayment period means low amount installment but the total interest rate amount increases.

Some direct lenders charge processing and /or upfront fees also without telling at initial stages. Therefore, choosing a loan store dealing in no-fee loan becomes a must. When I say to come out of the lending trap of private borrowing, I mean to repay the debt at the earliest. Here too, you should ask for no fee for early payment. 

Can You Make The Direct Loan Cheaper?

Once you seal the deal, you content negotiate the interest rate or terms and conditions. However, most of the direct loans come with flexibility in terms and conditions like early payment or extended repayment period. More than the scheduled installment payment can be made to reduce the cost.

If your credit card charges are higher than the interest rate of the direct loan, you can limit the use of credit card; in addition, it improves your credit score. Consolidating the multiple loans with one loan is also a good idea to save t interest rate cost; one big loan is easier to manage rather than managing multiple small loans at the different interest rate. FCA registered direct lenders offer better deal securing all your interests as per FCA regulations; no broker lender is a better choice to get cost efficient deal.  

Conclusion:

Taking a loan from direct lenders in the UK is not something surprising as the numbers of British households highly dependent upon this direct financial help. Selecting the right loan type for the justified minimum requirement and the repayment period is the first step while choosing the best direct lender comes at the next level of cheap borrowing.