When you apply for a short-term loans like the 12 Month Loans, things take place quite fast but some flaws can hamper the procedure. There are certain factors that create obstacles in borrowing procedure. These factors may vary according to the loan product. In long-term loans, some other aspects affect while in short-term loans, other factors play a decisive role. Some barriers make these factors work in wrong way and things go against you. It is better to know about them in advance and ensure a loan application, free from any weakness on finances.
Bad credit is a big constraint, show (good) current financial status
It is very important to have a good credit history. Financial opportunities especially loans become easily achievable when you have a perfect credit score performance. But, due to any reason, if the credit scores are bad then Present the Current Financial Status. It proves your repayment capacity. However, the credit scores are the major tool to prove the affordability. It shows the past to present financial behaviour of the applicant, but in case it is bad then it acts not as your strength but as your weakness.
High interest rates? Get the best customised deal
With no obligation, the short-term funding becomes expensive. This may make the monthly instalments bulky; in that case, your monthly budget may go off the track. In any case, you do not want it to happen. The solution to this problem is the customised deal. However, every loan offer comes with customisation but here too there is a large difference in the rate quote. Some loans may look affordable after personalised pricing while some may look not much affordable even after the lender tailors the deal. In that case, you need to depend on your search skills to find out the best customised deal from the myriad of choices that are available in the online loan market.
Need more time to repay the loan? Choose ‘no late payment fee’ loan
The 12 month funding choices have usually a small amount that can start from only 500 pound Loans are of small amount but your financial situation is such that needs more time to pay off this amount completely. In that case, it is important that you find a loan choice that comes with no late repayment fee. This is something that you need to clear from the lender in advance.
Any late payment fee may leave a bad impression on your credit record and your credit scores may go down. Always, see the long-term effects of a deal and act accordingly. There are many options in the market that come with ‘no late payment fee’ option.
Denial is the prominent fear. Multiple applications can be the cause
The fear of rejection on loan application is the prime fear of the borrowers. In this fear, you make multiple applications and think if one lender rejects, other lender will accept and approve the loan application. But this is a financial suicide and never ever do this. At a time, apply on one lender. Some loan companies like Os Money provide reliable deals that you can depend on.