Having a regular employment, whether it is on a full or part-time basis, is always viewed positively by the lender since it gives confidence that you will be able to make monthly repayments.
However, being unemployed, on benefits or between jobs can pose greater risks for the lender –and if this is your current status, you may only be accepted for loans with a guarantor, secured loans or products that are more expensive.
One thing that many lenders will take into consideration is if you have recently defaulted on any other payments in the last six months to a year previously. If you do, you may find that your application is declined completely, or you may get a short term loan with a much higher rate.
The main reason why recent defaults work against you is that you are considered more of a risk to the lender. It can leave lenders questioning your ability to pay back the loan if you have not demonstrated that you have been able to do so in the last year.
Again, if you have any outstanding loans, whether they are personal loans or similar short term loans, lenders will consider that you have multiple loans to pay and their loan becomes the next priority. So they may have to charge you a higher rate to manage the level of risk.
Not only will they be cautious if you have lots of outstanding debt, but having less loans open will improve your chances of approval and give you access to the best rates.
Finally, you can find the best rates for short term loans by using a price comparison website or professional loans broker, like My Financial Broker. We have an intelligent loans technology that matches you application with over 50 lenders in the UK.Again, if you have any outstanding loans, whether they are personal loans or similar short term loans, lenders will consider that you have multiple loans to pay and their loan becomes the next priority. So they may have to charge you a higher rate to manage the level of risk.
With no fees for using our service, we will be able to help you find the lender who will meet your requirements and offer the best price possible.
To get a free no-obligation quote, simply click on the apply now button and complete our online application in less than 5 minutes.