October 4, 2023
Do you find yourself short of £2000-£3000 on rent payments by the month’s end?
You are not alone.
Many individuals find it hard to save enough even with sound salaries. This is due to the high cost of living. With the commodity prices rising, one could hardly pay the rent in full. It is despite reducing the expenses to only the bare minimum. Moreover, if living distant from the family, expenses increase. You are solely responsible for the costs and the lifestyle.
It is the primary reason students, freelancers and tenants struggle to pay the rent in full. Sometimes, one only needs a few pounds to pay the landlord. However, overdrafts and credit cards are not the best way to pay the rent. It only increases the liabilities and impacts your credit score.
Moreover, missing a few rental and credit card payments slows down credit growth.
It makes financial management more expensive. An individual exploring the best way to counter short-term cash needs often asks:
“How to pay the rent affordably and independently?”
Your answer is- No guarantor loans.
5 Ways no guarantor loans the best for short-term rental glitches
With mortgage prices up, the price of rentals also increases. It is the reason behind individuals skipping rental payments in full. According to the Guardian’s latest report, “Around 2 million individuals defaulted on at least one mortgage, rental payment, credit or bill payment.”
The landlord may issue a court notice regardless of the reasons for missing rental payments. He may issue one under Section 21 wherein he can re-possess the property regardless of the tenancy agreement. It is especially valid if there is no issue from the landlord’s side.
Thus, you must discuss the non-repayment with your lender before seeking other options. If you get no help, no guarantor loans can help.
1) Independent financial management
As mentioned above, with no guarantor loans, you can manage the finances with no other involvement. It is ideal for those needing minimal credit push to finance the requirement. Adding someone to the loan implies additional liabilities and disclosure. Most individuals, like- students and tenants, like to finance individually. Thus, it pays any short-term bill immediately. You just need to have a regular income to support payments.
2. Prevents one from rental penalties
Some landlord charges extra if you pay the rent late. It is unique from the circumstances where you share a good relationship with your landlord. It is rare to spot. Under this condition, you can discuss the concerns frankly and sort out a solution. Alternatively, you may not expect much help from the landlord. It implies you must pay the rent timely.
Suppose you cannot discuss it calmly with your lender. Furthermore, try to pay at least 1/5th of the rental payment. It grants you some assurance to clear the rest of the payment soon. If your condition is genuine, the landlord may provide some time.
Another way to avoid all this hassle is by choosing no guarantor loans. Calculate the amount you need to make a complete payment. If you can bridge the amount successfully, clear your rent timely. You can get up to £10,000 on no guarantor loans instantly with favourable credit and income aspects.
3) No collateral requirement
It is one of the best parts about no guarantor loans. These loans are completely free from pledging assets. It acts as a relief for individuals with average earnings and credit scores. Not every individual wants to opt for a secured loan for the smallest requirement. Thus, if you want an unsecured mode of financing the requirement, no guarantor loans may help.
Ensure to borrow an amount that you can comfortably pay back. It is important from the credit and financial well-being perspective. One may qualify for no guarantor loans for bad credit scores, revealing stellar income proof.
Usually, these loans require an assurance and strength of affordability. The higher the affordability, the lower the interest charges and costs. Thus, if you share sound income and the potential to pay the loan back, you can get one for your needs.
4) Improves your credit score
It is one of the popular reasons individuals prefer no guarantor loans over any other mode. Apart from clearing the dues, the loans help credit scores. You must make regular payments according to the loan agreement. It reveals consistency and a disciplined profile.
A credit report with well-managed finances and debts reveals the potential to improve. Moreover, you may see your credit score rising at the end of the term. It is possible if you pay the loan payment without missing any.
Moreover, paying your rental payments timely also impacts your credit score positively. It sets an impression that you are reliable in terms of timely payments. Furthermore, it helps you get a lower-price rental if it is on the plan.
5) Avoid impacting other priorities
You must identify the approx. amount that the landlord may impose on you as a rental penalty. It would help you eliminate the surprise later. Alternatively, no guarantor loans are the best way to finance the payments. Under these loans, you get a quick review of the costs and the impact of missing one on your credit score or the total costs.
Thus, you can decide the way to finance your requirements accordingly. If you do not get any clarity from the landlord, pay the rent on time with the help of a guarantor loan. It is better to deal with rather than missing a payment and inviting an unknown “surprise”. Moreover, the “surprise costs” may impact other critical priorities for the month.
It may include – arranging for the child’s education or sports participation and repairing the backsplash or the leaking roof.
If you pay all you can towards the rent and have nothing to counter these emergencies, check loans. Financial equipment like poor credit loans may help here. You may get loans for bad credit on an instant decision from a reliable direct lender for your needs. Analyse the first priority and borrow an amount that you can pay back comfortably. These loans have fast turnarounds. It implies you can get the loan on the same day quickly.
These are some ways no guarantor loans for poor credit help you fund the rent-associated requirements. Before approaching these loans, talk things out with your lender. It will help you clarify things and arrive at a solution. Alternatively, check savings to pay some amount upfront. It would help you reduce the rental amount and liabilities.
Ellie Brown is a proud resident of the UK and love to be a content writer and editor for the last 9 years. Writing blogs and articles is her passion that one can explore at the top blogging platforms. Ellie holds a key position at Florafinance as the Senior Content Editor and Chief Loan Consultant, leading a team of more than 70 professionals. Ellie Brown covers the major aspects of the UK’s lending industry in her blogs and guides loan seekers who come at Florafinance to apply for a loan. She possesses the Post-Graduate degree in Finance and Investment.