Myth: If you have bad credit your only options are payday and doorstep lenders.
While you may have trouble getting a loan from a high street bank, payday and doorstep lenders are not the place to turn to. They often have interest rates through the roof, and you will ultimately end up in a worse financial position. Luckily, credit unions offer loans for people with bad credit or no credit at fair rates. Click here to learn more about applying for a loan from Nottingham Credit Union.
Myth: Applying for a loan is complicated and time consuming.
Applying for a loan is really not as scary as it sounds. To apply for a loan at NCU, all you have to do is fill in a short application form answering some questions about your finances so we can determine how we can help you. Decisions are made quickly and on a case by case basis so your individual needs are taken into account.
Your credit rating will be damaged by a rejection.
A rejection shouldn’t do much damage unless you have made multiple applications with different companies. To protect your credit rating, your best bet is to only make one application.
Myth: Taking out a loan will just make my debt situation even worse.
If you have multiple debts with different interest rates, it might benefit you to consolidate them by taking out a loan to pay them off that has a lower interest rate. It is also a lot easier to manage one payment plan rather than several different ones. If you make your monthly payments and pay off the loan on time, it will end up improving your credit score.
Myth: There is an advantage in applying for more than you need.
You might believe that asking for more than you need will allow you to pay off the first payment of your loan, or even increase your chance of getting approved. However, lenders will only give out loans that it believes a borrower can repay, and you may end up in more trouble if you end up with repayment terms that are beyond your means.