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Why do people need long term loans for bad credit in UK?

Author: Jenny Elmore
by Jenny Elmore
Posted: May 26, 2017

It is rare for the average individual to have sufficient cash in hand for large purchases like a house or a car. In this situation they will require a fairly large amount of money which can be repaid over a lengthy period of time. Usually the tenure of long term loans UK ranges from 3 to 30 years. These loans are meant for large purchases and should not be taken frivolously. This is because your inability to repay them can end you up in a financial mess and with bad credit.

Advantages of long term loans

Long term loans allow you to opt for a larger amount of money. However, the approval of the amount depends on the value of the purchase and your eligibility.

The best advantage of a long term loan is the smaller amount that you have to pay as EMI for large loan amounts due to the longer duration of the loan

At the same time, you also need to pay a lower interest rate on these long term loans because of the larger amount. At the same time, the house or car that you are purchasing are considered to be collateral to the loan and this way the loan becomes a secured loan which further reduces the rate of interest.

Long term loans also have minimum interference from investors. Issuing shares and looking for private investors is a common enough ways to raise the capital required for potential investments. However, this can also end up dividing the ownership of the company and redistributing the control. On the other hand with the help of a long term loan you can fund the probable investment while keeping the controls of the company in your own hands.

What do you do if you have bad credit?

Anyone can end up with bad credit simply due to oversight of small mistakes or even due to genuine problems for which you are not responsible. Bad credit can also be the result of poor financial habits, but you may have learnt from your mistake and be ready to make a fresh start. However, high street traditional lending agencies look down upon people with bad credit and almost all the time their applications for long term or other loans are rejected.

So what do you do if you have bad credit score and need a long term loan for a large purchase or for business purposes. It is indeed possible to get loans when you have bad credit if you approach the right lenders. These are specialist lenders who understand the predicament of the modern individual and understand that bad credit does not mean that the person will not repay the loan. The best way to find such lenders is to approach a reputable loan broker who will help you get long term loans for bad credit UK. These brokers can be found online with a little research because all of them have a strong online presence in the form of their own user friendly websites. The entire process of application and approval for the loans is conducted online and you do not have to leave the comfort of your home or office for the same.

About the Author

My name is Jenny Elmore. I am from London and working as a Financial Adviser at Best Unsecured Loans Homeowner Loans.

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Author: Jenny Elmore

Jenny Elmore

Member since: Jan 26, 2017
Published articles: 3

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