Learning more about lenders with 12 month loan options
The 12 month loan has been a standard of the lending industry for many years. It is able to offer lenders the opportunity to take out a loan, and repay it within a comfortable period, without having to have the threat of debt collection hanging over their head for years to come. There are several advantages to taking out a 12 month loan, including having a longer period of repayment, a lower interest rate than is common in more short-term loans, and being able to obtain a bigger loan. When choosing a 12 month loan, there are several different lenders who may be able to help you.
Choosing the bricks and mortar options
Standard bank and building society loans, sometimes known as bricks and mortar loans, are often available for those who want to be use a traditional lender. The problem with these lenders is that those with bad credit, who are unemployed or self-employed, and those with no credit history are all likely to find that they have problems with obtaining a loan in the first place. If you have bad credit, then you may be deterred from even asking your bank for a loan, since refusal can deduct more points from your credit score. Of course, if you have no credit history, then you are unlikely to want a refusal as your first score. In these cases, it may be better to look to alternative lenders for your 12-month loan.
Online lenders and your options
Online lenders are becoming increasingly popular, particularly as more borrowers are taking the time to research their lenders online before asking for a loan. Payday loans companies are some of the largest online lenders, and offer financial services to those who struggle to get loans elsewhere. They do charge a high rate of interest, sometimes more than 1500% APR, which can mean that a 12 month loan garners very high charges. Many borrowers are put off of taking out a 12 month loan from a payday lender purely for this reason. However, there are lenders offering payday services who can provide year-long loans without these high interest rates, and researching these can help borrowers to choose the perfect company for their specific needs.
Another group of lenders who offer 12-month borrowing are bridge loan companies. Bridging loans are, in fact, less regulated by the FSA than payday lenders or banks, so borrowers are taking a risk by choosing this option. There may also be hidden fees, and interest rates tend to be high. In the past, they were popularly used to help buyers get extra money for house purchases, when the mortgage couldn’t cover them. However, more and more borrowers are now using these loans for short-term purposes. Brokers may be able to help you find a responsible and accessible bridging loan.