Sometimes your deeds, situations push you in conditions that make your financial life difficult. The major problem comes when you try to attain a financial product. It becomes difficult to get approval as the loans are among the most common and sought-after choices.
Following is the mention of some complicated situations that happen in your finances. Know the ways and tactics to understand how to qualify for a loan when you are in those circumstances.
In bad credit situation
Poor credit scores are notorious for their destructive role in spoiling financial lives. They are ubiquitous and also stubborn as they do not leave you quickly. Following conditions are necessary to exist to apply for a loan with a low credit rating:
- Show a good income. A prominent figure of income can compensate for the weakness in the credit score performance. Earning capacity proves repayment capacity and that is the prime concern of the lenders.
- Provide the bank statement to show the financial transactions. Sometimes the degrade in score happens due to some recent delay in payment but the record is not spotless. In that case, the lender quickly understands that the mess in money matters happened due to circumstances.
- Do not take any new loan or credit card – With already ‘not so fair’ credit rating; it is difficult to borrow money. Why absorb your creditworthiness by applying for other products?
Living on benefits
Health benefits, unemployment benefits, childcare benefits and there are many more types that people avail for varied reasons. The prime identity of a person in any situation that demands support emerges as the financially weak individual. This makes the attainment of funds difficult. If you too are living with any such help, the following are the requirements to convince the lender.
- Provide all the necessary proofs and documents of the aid you are getting through benefits. Few lending companies consider such assistance as the source of money to measure as the repayment capacity of the applicant.
- Don’t waste time and apply for those loan choices that are only for these purposes. There is a wide range in the online loan market for loans for people on benefits. You can search online and can pick the best suitable option. However, do not forget to differentiate between the genuine and unethical deals. The latter ones always demand an upfront fee, which is not permitted.
- If possible, show an additional source of income. Rental earning, part-time or freelance job, anything can work. Some lenders have conditions on this. Few may want the income proof of last 3 months while few may ask for 6 months. If you are living on benefits and need a loan today, then this rule is vital to follow.
Struggling with County Court Judgement
Oops! Speak of the devil, and he will appear. Perhaps it is not necessary to describe the level of destruction this situation causes. CCJ is an extremely stressful financial situation. This is an absolutely ‘handle with care’ condition. Following are the ways to have to win approval on your loan application.
- Try to pay off the debts in the first month after the judgement. This eradicates the CCJ from your credit records, but you need to inform to the court that you have paid off the debt. Forget not to present the payment proof.
- If you fail to clear all the debts after CCJ, search for the specialised loans that are for this situation. Very bad credit loans are not in abundance in the loan market, but there are few providers.
- If possible, bring a guarantor. It can be difficult, but it is necessary to work on preventive measures to avoid rejection. This strengthens you as a loan applicant, and the lender may consider your application. However, make sure that the guarantor is equipped with the good credit score.
The precise message is…
For every situation, the solution is available, and you need to work on that. Despite the complications, but you need to know the correct ways to apply.