Advantages of a 12-Month Loan from a Direct Lender in the UK

Do you need a loan that can be repaid within a year? 12-month loans can be an apt option, provided you are sure about your exact requirements. The best part is that you can obtain funding immediately just when you need it.

These loans do not demonstrate that the lending process is going to be lengthy. When a sudden cash crunch surfaces, you want a loan that promises quick disbursal. At the same time, you would think of having a flexible tenure for repayment.

Getting money on time matters more when you are running short on time. Emergencies cannot let you wait as debt will keep racking up. In such challenging times, these loans can be a breather for you. They allow you to have a loan that does not pressure you too much regarding repayment.

Do not interpret it as to giving the least importance to repayment. Loans are offered after making sure about the chances of repayment. These loans are about having cash for any purpose which should be for a short-term.

You will find a lot of things to praise for these loans. Again, you will come across a few things that are downsides of these loans. Take a tour of this blog to understand the differences.

Why should you apply for 12-month loans in the UK?

These types of loans are usually not offered by traditional lenders. They demand a lot of flexibility which might be missing in mainstream lending. This is all about typical lending where the borrower has to agree on fixed terms and conditions.

Direct lenders are the ones you must contact when it comes to getting feasible conditions. Since they offer bespoke loan deals, getting suitable rates is possible. The lender will assess your financial condition to decide how much interest rate you can bear.

The different features that are basically the advantages you can enjoy with these loans are:

  • Bad credit is not an obligation

Can you ever imagine getting a loan with poor scores from a traditional lender? They are very specific about their requirements, which clearly state that their credit history should be perfect. For this reason, you cannot think of applying for loans with them.

On top of this, getting loans with flexible repayment tenure will be out of the question. You can overcome this hesitation by applying with a direct lender. They are ready to offer 12-month loans with no guarantor with a bad credit history.

To borrow money, you do not have to think of satisfying other conditions like a guarantor. You can be in a safe spot that allows poor scores without additional claims.

  • Affordability wins the attention

Yes, this factor gets the attention as credit scores get the least weightage. Affordability defines the way you have been managing your finances so far. It has no correlation with credit scores.

Maybe your credit history is not good. You can recover from it in various ways.

  • By monitoring expenses to curtail unnecessary payouts
  • By adding an income source to support surplus needs
  • By leading a frugal life where priority expenses only exist
  • By checking for errors on your credit reports
  • By rectifying the mistakes that are causing low credit scores
  • By registering yourself to be able to cast your vote

Through all these ways, you can improve your credit scores. Meanwhile, you must keep up with recent payouts that are included in your monthly budget. If you are able to gather sufficient cash for your usual needs, not many pending issues will arise.

You must also arrange money for savings. No matter how much you earn, surviving unexpected cash needs would be difficult without saving. All these will prove your affordability, and they can help you get that much-needed approval for 12-month loans.

  • Only online formalities

Private lenders in the UK let you make an online application for these loans. Flexibility is not about offering a suitable repayment arrangement. It is also about making the process of borrowing seamless and less time-consuming for you.

Forget about visiting the bank branch multiple times. The lender has already made an online application available for you. In order to be able to access it, you will just need a phone or laptop.

With a stable internet connection, you can make sure of the smooth submission of the application. Since the form is quite short, do not hurry up. Take your time to fill it up with relevant details.

Otherwise, your silly mistake can become a reason for rejection of application. This could be another factor which encourages you to get a loan for a year. You do not have to work harder to apply for these loans.

  • Use it in whatever ways

You must treat these loans like a typical personal loan. The reason is their liberty to use. You can utilise personal loans for any purpose and even to cover sudden necessities.

Are you planning for small home improvements? They are urgent and should be done without further delay. 12-month loans can be your best fit as you are free to use them for this purpose.

If you are stuck with pending payments like medical bills, these loans can rescue you. In addition, these loans can be your best companion when it comes to consolidating debt. Thus, the different ways you can make the most out of these loans are limitless.

However, refrain from using these loans to purchase a luxury item, dress, etc. There should be some pressing requirements that you are not able to meet.

  • Unsecured funds without botheration

They are a perfect example of personal loans because of this reason as well. Unsecured loans are another form of these loans. 12-month loans let you fetch the required funds without putting any risk to your assets.

For this reason, these loans are also useful for tenants and non-homeowners who do not have any assets.

The bottom line

You might be apprehensive about 12-month loans. Analyse their benefits so that you can ascertain if getting them will be beneficial for you. Weigh options based on interest rates which are affordable for these loans.

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