Now that we are into the new year, it may seem like a great time to put into action some of the plans you have been putting off. However, with the UK’s current economic climate still very unstable, you may think that plans such as renovating the kitchen, buying a new car, hosting a lavish wedding or even simply going may have to be put on hold even further.
Plus, with high street banks being more stringent than ever when it comes to signing off loans to the general public and small businesses, they are unlikely to offer a loan to anyone with a poor credit score. If it doesn’t look good on paper, it’s not a safe bet for them and rejection is likely.
An alternative if you’re in need of cash is a high interest loan. They offer a generally quick and simple method of getting the money you need. However, the main issues with these loan providers are that they are often unable to lend larger sums of money for more extravagant purchases or projects, and tend to have through-the-roof APR rates.
It seems like the reliance on numbers and calculations is preventing the British public from getting the money they need.
Guarantor loans specialist Amigo relies not on the numbers and figures in a person’s credit rating, but their ‘social score’ based on how much their family members and close friends trust them; in order to decide whether or not they are eligible to receive a loan. Providers such as Amigo have adopted a much more ‘human’ approach to lending that offers a lifeline to people who have been turned down by the banks due to their computerised low credit score.
Loans for bad credit ratings are few and far between, but the fact remains that guarantor loans are likely to become the salvation Britons have been hoping for in 2012.