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Guidelines for Applying 600 Loan in the United Kingdom
Financial institutions are generally wary of lending money to people with no income for the reason that they are unable to prove that they can make payments and that they can make it on time. Now, getting a loan without an income is hard, but not impossible. Here’s how.
Proof of Income
Even without a job, you need to provide proof that you have a source of money which you can use to pay your loans. These are what you call the alternative sources of income. These can include pension and welfare benefits. Whatever it is, financial institutions will want to review it prove your creditworthiness.
To prove your creditworthiness, they are also going to check your payment history. This will tell them if you pay your bills on time or if you’re notorious for not paying on time. Whatever it is, it is going to show up on your credit file and they are going to verify it.
Maintaining a Good Credit Score
Another important factor when applying for a loan is your credit history. If you have a bad credit history, then there’s a fat chance that you might be rejected. On the other hand, if you were able to maintain a good credit score, financial institutions may be able to establish your creditworthiness without even while unemployed.
What to Watch Out For
Since the usual loans that are accessible for employed people may not be available to you, here are some conditions that you need to be wary of:
High-interest costs stem from high-interest rates which means more money to pay back
Short-term loans demand you to pay within a shorter time frame
It is essential that you always try to assess your financial situation. Make sure the type of loan you’re applying for will not drain your bank account.
Can I Pay Off My 600 Loan with a Credit Card?
Credit cards let you do so many things – shop, dine, travel and more. But can you really use your credit card to pay off a loan?
If you have a loan to pay off, you may be wondering if you can use your credit card to settle a loan. In most cases, yes. Basically, every time you are purchasing something using your credit card you are taking out a loan. So as long as your credit card’s available balance can accommodate the amount.
But is It a Good Idea?
Before deciding to pay off a loan using your credit card, make sure you are indeed saving money since you will still be paying interest every month until you clear off the credit card debt. You can inquire with the credit card company if they have debt consolidation programs that allow you to ‘transfer’ other existing debt to your credit card. These may have lower interest rates compared to your personal loan’s interest rates, but as mentioned earlier, be sure you are really saving on interest rates. Also, you must remember to settle your credit card dues on time, otherwise you are simply shifting the debt here and there.
Look for Other Ways to Consolidate Your Debt
Some people will frown upon using a credit card to settle an existing personal loan. If you really want to get rid of a loan with high interest rates, seek the help of a lender who can provide you a loan with lower interest rates, or one with longer terms so that it is easier on your budget.
Repaying a 600 Loan Early
Loans are the most convenient financial solutions, especially during times of unexpected financial situations. But because these services coexist with interest rates, borrowers are often vulnerable to being trapped in a cycle of bad debts. With loans, borrowers may either borrow money in amounts as small as £100, or as big as £10,000. These loans are usually payable either in short or long payment terms, depending on the amount borrowed by the borrower, as well as the payment condition agreed with with the lender. For borrowers hoping to secure loans in small amounts that they wish to repay in short payment terms, unsecured loans are often the best options. Borrowers, who, on the other hand, would like to procure loans in bigger amounts and much longer payment terms, are often better off procuring secured loans, depending on their existing financial conditions. Each loan procured by the borrower is subject to payment terms which often require strict compliance from the lending firms, subject to previous and subsequent agreements that he may have or may enter into with the lender. Due to this, lenders often do not allow early repayments of loans by the borrowers, especially if such repayment would entail a decrease in the amount of the previously agreed interest rates. Some lenders, however, allow early repayments of loans provided that the borrowers are willing to pay off the entirety of the interest rates attached to the debt in question. But while this option would allow borrowers early relief from the payment of their loans, it does not ordinarily spare them from payment of the original amount of the interest rates attached to the loan. So while early repayment of loans may be allowed by a number of lending institutions, this does not generally furnish borrowers a means of savings.