Having an emergency cushion at the time of unforeseen expenses seems like a dream. It is likely that you fall short of cash when you need money urgently even though you have stashed away cash for a rainy day. What will you do if you need money urgently and you have run out of it? You will borrow money from a direct lender.
Short-term loans are the quickest way to fund your small needs. You can borrow up to £2,500 that you will repay in lump sum at the end of the term of the loan. Such small loans do not allow you to use funds for more than a month. Unlike other direct lenders, ExtraMile Finance can allow you to repay the debt in weekly and bi-weekly instalments if you have a good credit rating.
If you want to apply for small loans, follow these steps.
An impaired credit file can lower the chances of having a loan signed off on. A direct lender always takes into account your credit score to estimate the default risk. The lender is likely to turn down your application if your credit score is not up to the par, but ExtraMile Finance accept applications from bad credit borrowers. Note that you will end up paying high interest rates if you are borrowing money with bad credit rating.
Emergencies never inform you before they knock at your door, which is why we do not emphasise credit scores when you need emergency loans. You will get funds as long as you have the repayment capacity.
Needless to mention, a few direct lenders run a hard credit check. This allows them to access your credit file to check payment history. The decision whether to approve or turn down your application depends on the default risk known after running a hard credit check.
Hard inquiries often terrify bad credit borrowers because it quickly pulls their scores. Further, it delays the lending decision. We know that it is very important to get a loan as quickly as possible during emergency, therefore we do not run a hard credit check.
Our lending decision depends on a soft credit check (similar to hard credit check but no inquiries are shown up on the report) and your income statement.
Having no credit history makes it difficult for a lender to know the default risk, but it does not mean that they will not lend you money. Borrowing money with ExtraMile Finance is not difficult even if you have no credit history. We will evaluate your income sources to know the amount you can afford to borrow.
If you want to borrow more than £2,500 regardless of your credit history, you need to secure the loan with your vehicle. Such small loans are known as logbook loans. It means that if you fail to pay off the debt on time, you will lose the collateral. The best part of these loans is you will repay the debt in fixed monthly instalments. Note that the borrowing limit depends on the value of your vehicle. We suggest that you should take out these loans only when you are certain that you will not fall behind repayments.
No matter which type of loan you need, ExtraMile Finance can be an ideal lender because of following reasons:
Even though we lend money at competitive interest rates, you may fall into a predatory debt cycle if you make a decision precipitously. Here is an example of good and bad borrowing.
Good borrowingSuppose you travel to your work place by a public transport every day. Since shifts are long and it is exhausting, you decide to apply to a new company offering a higher pay, but it is far from your home. It is not difficult to go by a public transport. You decide to buy a car, but your savings fall short of £2,000. You decide to take out a loan.
This is a good decision because your increased salary will help you stay afloat.
Bad borrowingSuppose you have decided to buy luxurious couches for your living room. Looking back to your savings, you find that you have only £2,000 and you need £3,000. You take out £1,000 ignoring the fact that you can pay only £100. Of course, you will fall into debt.
Before taking out a loan, you must consider your repayment capacity.
Want to borrow money urgently? Apply for the loan here.