In this article, we will be providing you with insight into zero-interest loans and the future of the direct lender’s industry.
FCA Restrictions And The Impact On Direct Lenders
When looking at the payday loans sector, there have been several changes that have revolutionised the sector to make it stand out and be much more competitive for all those within the industry and make it much more affordable for those that are applying for these loans. These FCA restrictions such as Initial cost caps of 0.8% and fixed default fees capped at £15 to help those that are struggling to pay back the loan, this has helped to expand the industry as a whole.
Where Can You Find Zero Interest Loans?
Zero-interest loans can be found in several different places and can provide you with the funds that you need with zero interest in the first year. This type of loan is commonly used for car finance and other financing on large pieces of furniture and items that you will need to spread the cost for. These are a huge benefit for those that are looking to spread the costs of items as it allows you to begin to pay back the loan amount with as minimal interest as possible.
How Can You Qualify For These Loans?
In order to qualify for short term loans direct lenders as well as zero-interest loans, there are several background checks that you need to pass to be accepted for a loan. One of the biggest elements that you need to pass is the credit score checks. To qualify for this loan, you need to have a FICO score of at least 720. This shows to the lender that you are good with your money and can be trusted to pay back the loan on time with all additional charges.
Understanding Your Credit Score
The final element that you need to consider is the impact that a negative credit score could have on your ability to be accepted for this finance. Before applying, you should ensure that your credit score is as strong as possible to ensure you are accepted by the lender. Though it can take time to better the credit score, paying back any outstanding debt as well as checking for any incorrect information will make sure that your credit score is as strong as possible. It is also important to make sure that you have as little hard inquiries as possible as this can be a red flag for a lender.
With this in mind, several aspects go into applying for these loans to make sure that you have the finances that you need for your items. Where will you start when applying for this form of loan?