Our lenders could offer you a 12-month loan even if you have a fairly poor credit rating. When you use our online application form, we search our panel of lenders in the UK offering 12-month loans to find the cheapest lender likely to say yes to your loan.
These types of loans are referred to as long term personal loans or instalment loans. These loans can be unsecured, secured or even be co-signed with a guarantor to increase the value of the loan offered.
It is recommended that you have a steady income when taking out a 12 month or longer loan as you would need to be able to budget in advance to ensure that the loan can be repaid.
This type of loan means that you repay smaller amounts than what you would on a monthly loan (payday loan) which may be more within your budget, but due to the longer time period, you are repaying a larger amount of interest over the 12 months. You need to ensure that you factor this into your planning when looking at taking out a 12-month loan.
The banks generally require you to be over 18, a UK citizen, have a bank account and be receiving a regular monthly income before being approved for this type of longer term personal loan. These types of loans can often be applied for online with minimal fuss and a quick response rate on approval.
Non-payment of these types of loans negatively impact your credit score which could result in you not obtaining any credit in the future, as well as extra charges being levied. In the case of a secured loan, you could end up losing the secure property. In the case of a guarantor, they would need to then cover the repayments or face losing anything they have offered as security against your loan.
When taking a 12 month payday loan, ensure that you budget well in order to afford the repayments over the full 12 month period. Paying on time will help improve your credit rating. Should you get into trouble financially when having outstanding balances on a long term long, it is recommended that you contact your financing company as soon as possible in order to make alternate arrangements to settling the balances. Late or lack of repayment could have many adverse effects, the least of which would be added finance and interest charges on the balance outstanding as well as legal fees accrued in recovering the monies from you.