Loans in the UK – information
Do you intend to take out a loan in the UK, but you don’t know what requirements you need to satisfy? We understand you perfectly for we ourselves did not know what to expect in such matter once. We decided to prepare article that will contain all the essential information regarding granting loans by banks. The effects of our efforts are to be found below.
Factors conditioning granting a loan:
Permanent place of residence – people who live in the same place for a longer period of time are perceived as more credible by banks and as a consequence are more likely to be granted a loan.
Form of employment and level of earnings – if you have been working for a company for a few years then the probability of you being granted a loan goes up. Moreover, if your salary is substantial then you can submit for really large amounts. It looks a little bit different if you are self-employed. Bank may be afraid that you lose your accounting liquidity one day or your income drops low and make it impossible for you to pay the installments. For this reason the bank will examine your financial capacity very carefully and prepare for eventuality mentioned above.
Credit score – every bank checks customer’s credit rating out before granting somebody with a loan and assesses it with points based on obtained data. The more points, the bigger are chances to be granted reduced-interest loan.
Active participation in elections – credit recipients who participate actively in elections and are registered in electoral roll are rated higher by banks. Why is that so? If you vote during elections then it means you are interested in your country’s good and do not intend to leave it. As you know from the previous point, if you have permanent place of residence, your chances of being granted a loan increase.
Other important issues:
You have right to terminate your agreement with a bank from which you took out a loan in time of 14 days since you signed it. Moreover, you do not need to deal with any financial consequences by doing so. Termination of a loan agreement mentioned above is called ‘cooling-off period’.
Abbreviation APR means actual annual percentage rate. It appears most of the time at the end of various booklets and leaflets. Unfortunately, low credit score leads to APR increase.
Don’t let yourself be persuaded that you need PPI credit insurance. If you earn large sums of money and never before had problems with paying installments on schedule, then such coverage is not needed.