Mini Loans For First Time Borrowers
- Obtain fast approval for mini loans. Apply online and get an instant decision.
- Apply with bad credit history. High acceptance rates even for poor credit.
- No security or guarantor needed. Compare UK direct lenders for the best loan deals.
Sometimes, no matter how careful you are at following your budget, unexpected things happen and in a snap, can wreak havoc on your finances. Out of the blue, your car was broken, a family member needs immediate medical attention, or a part of your home collapsed and needs repair, so what do you do? What if all you have are an empty wallet and insufficient savings? Are you going to turn to another family member and borrow money?
Asking help from the people you know isn’t bad; however, it may not be practical at all times, especially when you need it quick and you’ve borrowed from them beforehand. This leaves you to borrow a loan.
Introduction To Mini Loans
If you’re a first-time borrower, borrowing a loan online sounds terrifying all because you cannot see the person you’re dealing with. Luckily, there are mini loans you can try when looking for a small amount. Although you cannot talk to the lender personally, like banks and conventional lending facilities, the online platform is much easier, faster, and reliable. The requirements and application procedure are less time-consuming, making it a perfect option when you’ve never borrowed before. But before you hit that application button, you may want to consider these things:
- Small Amount
Mini loans, as the name suggest, only provide a small amount which you can use to cover minor expenses, such as grocery, rental, and the like. It cannot be used for long-term financial goals; you cannot use it to purchase a new car or a house.
- Repayment Term
Since it offers only a decent amount, the lender expects to get the loan back in a short period of time. Normally, the repayment term is between two weeks up to one month, depending on the loan’s terms and conditions.
- Fast Application Process
Most lenders provide the money in as fast as one hour, given that you have met their criteria. The requirements are minimal and there’s no need to verify a lot of things. Once you’re approved, the fund is transferred to your bank account immediately.
- Apply Online
With mini loans online, there’s no need to go out; all you have to do is visit a potential lender using a reliable Internet connection and a laptop. Complete an application form with the basic details, such as your name, employment information, and bank account.
- Less Paperwork
Usually, the lender will only require an accomplished application form. In case it’s necessary to provide a document, you can send it via fax or email a soft copy to the provider. If you’re lucky enough to get the lender’s approval, your money will be transferred to your bank account on the same day you’ve applied, or on the next business day.
Do You Need A Guarantor When Applying For Mini Loans?
Most lenders will ask for a number of requirements before giving their approval especially when you’re borrowing for the first time. One of which is the guarantor – another person who will guarantee on the loan in case you stopped repaying the debt. It may increase your chance of getting approved but you may be putting a strain on your relationship in the event of default. Fortunately, this is not necessary with mini loans.
Lenders are looking for minimal requirements, such as a proof of income and a working bank account. This means that you need to be employed; in case you’re jobless but you need a loan, you can look for a lender who accepts other sources of fund, such as pension, alimonies, or benefits.
Below are some more of the advantages of mini loans:
Bad credit borrowers and those who have no credit history are likely to get rejected; offering collateral can boost their chance of getting approved. However, this is not always a good idea since there’s a chance for your property to be repossessed by the lender. The good news is that mini loans will not require any security against the loan, rather than your proof of income. This is a good option for anyone who doesn’t have any property to pledge or for borrowers who don’t want to risk their assets. Your car or home will not be taken away from you even if you fail to settle the loan. However, this will lead to a lower credit remark.
Unexpected emergencies occur and it becomes worse if you have little to no money to cover it. With mini loans, you’re confident that you can resolve your monetary concerns in a snap. The loan provider can assist your concerns 24/7 so you don’t have to wait for a couple of days or even a week. Some lenders can provide the fund you need in as fast as one day or even 30 minutes!
If you’re a stay-at-home parent, a person with a disability, or a working professional, going out to get a loan is not a practical option. Fortunately, there’s a good alternative you can rely on in times of need. Mini loans won’t require you to deal with heavy traffic, long queues, a plethora of documents, and intimidating lenders because the entire application is completed online. Once your application is successful, your money is transferred directly to your account.
No Early Repayment Penalty
Most banks and traditional lending facilities will charge you for paying earlier than your due date, and it may sound a little bit unfair. With mini loans online, you can settle your loan as soon as possible, without incurring penalty fees or early repayment charges. This means that you can repay the loan in advance without the extra charges.
Improves Credit Score
Improving a credit score or creating a credit history might be the last reason why you’re borrowing a loan. Unknown to many, you can fix your credit rating by simply repaying the loan on time. Mini loans are easy to acquire, thus giving you the chance to have the money you need and improve your credit remark. Just be sure to settle the loan on time and avoid defaulting on it.
Mini Loan FAQs
Can I apply if my credit is bad?
Yes! You will still be able to apply if you have a bad credit history because many lenders will still be willing to work with you. If you have been refused a loan before then this might be the perfect solution for you.
Can anyone apply?
You must be over 18, a UK resident or citizen, have a valid UK-based address and have an active bank account before applying. You must also pass an eligibility test to ensure you can make the repayments comfortably.
Must I provide a guarantor?
No. Many lenders today provide loans without requiring a guarantor. You won’t need anyone to co-sign for you, so you can keep your finances to yourself.
Will I get my cash on the same day I apply?
Most of the time, the cash will be in your account on the day you receive loan approval. With a smaller loan the cash is typically very fast, however larger amounts can take slightly longer to process.
How much cash can I get?
This will depend on your current income and how much money you have over after regular expenses have been paid each week or month. An auto decisioning process will help determine a practical loan amount that you’ll be able to repay comfortably.
Can unemployed persons apply?
Yes! Many FCA-accredited loan providers will be willing to assist unemployed individuals. As part of responsible lending however, you will still need to prove that you can afford the repayments.