First Finance

ARE YOU EMBARRASSED BY CONTINUOUS DEFAULTS? HERE’S WHAT YOU SHOULD DO

Blog post   •   Aug 28, 2019 07:58 BST

Financial management is not in everyone’s skills. Of course, different people have different way of managing finances and they are doing so on their own techniques. Some of them fail to keep a balance while some win the race. Same thing happens when you have defaults against your name or credit profile. Pending dues, payments, bankruptcy or defaults are enough to put blot to your creditworthiness and convincing the lending institutions will suddenly become difficult.

In the UK, many people have the trouble of County Court Judgement (CCJ). It is the judgement given by the Court against you because you have not made the payment and also not given the answer to the vendor’s query on non-payment. Truly, it is not the right thing to do but after all, you are a human and mistakes can happen. Or, there must be some circumstances that forcefully put you in the trap of CCJ.

Anything can happen anytime and you cannot relax yourself if any financial emergency occurs. Due to that judgement against your name, it would be very tough to convince the banks or other mainstream lenders to have money quickly. Rejection may become your destination if you approach them to apply for the loans.

Disappointment is obvious but FinTech Lending Is Perfect Reply

County Court Judgement has undoubtedly a negative impact to your credit profile. But it does not mean that it deprives you from taking the borrowing advantages. Gone are the days when people struggle to borrow funds when having CCJ against their name. Nowadays, trends and policies have changed significantly, which opens up equivalent opportunities for them too.

Here we cannot take further our discussion without having a debate on FinTech concept of lending in the UK. The lenders belong to it are considered as flexible to their policies and they do not hesitate to take risk of accepting the loan applications of the people with very poor credit scores.

Now getting the CCJ loans with no guarantor from direct lender is not a dream, it is a reality. It has to be noted that these loans do offer only small amount to borrow, which lenders are not so bothered about even if no one is there to co-sign the loan agreement besides the primary borrower.

Is Lending Becoming too much easy nowadays?

Here we have to do a comparative analysis about the FinTech sort of lending. There is no doubt that it has made borrowing funds so much easy than the previous days but it does not mean that everything is ok. As a borrower, you must have an analytical mind and therefore, do your homework before making any decision.

Advantages: Easy lending procedure does have certain advantages for the borrowers. They now have online access to loans that makes the way for quick approval and fast fund disbursal, of course with no impact of CCJ or very bad credit. As said earlier, the small amount does not require backing of a guarantor or collateral. Everything seems in favour especially when it comes to loans for people on benefits.

Disadvantages: In the shadow of advantages, borrowers often neglect the disadvantages that later hurt them badly. Easy lending like loans for CCJs often invites high interest rates and borrowers have to agree upon them because they need funds. The lending institutions, which are working for their own business, often trap borrowers to their very high rates of interest.

Let’s end positively...

If you have continuous defaults against your name, then the chances are always that you feel embarrassed. Simultaneously, using the FinTech lending at its best possible forms will bring your finances back on track. However, you have to make certain efforts to remove the tag of CCJ or defaults, for which you have to clear pending dues as soon as possible.

One more suggestion is for you that try hard and take out some time from your busy work schedule to find out the reliable FinTech lender. No need to take casual leave from your job rather does it online and within a single day. It is because only a trustworthy loan provider can modify the loan deal according to the individual circumstances. Hope you will enjoy it