Low Rates Are Attributed To Loans That Carry Very Low Risk And For Larger Amounts Of Money Over Longer Terms

Category: Finance.

Seems simple doesn' t it?

You find a website you feel comfortable with and that offers unsecured loans for tenants and tenant loans at a low rate and you apply. You go online. Naturally! What's happened to cause that? Ah, but then you get an offer and for some reason, you don' t get the rate that you thought you were going to get. Why can' t I have the rate that I applied for? Understandably, they are disappointed and if truth be told, a little upset by the experience.

For many people all over the country, this scenario is one that they will readily recognise. The lender says that they aren' t able to offer that rate to them but they won' t say why. There are generally two things that could be occurring here. So What's Going On? The first is that yes, the lender or broker may have certain plans that it is possible to meet the criteria for, that carry the low rate that they advertise. The law says that when a company advertises a certain rate, they must also show their typical rate or the rate that at least 66% of their customers actually get and it must have a particular level of prominence in the advert.

However, very few people that enquire can actually meet the criteria in reality. You will note that this can be quite different to the low rate you were attracted by. The second reason is down to the applicant. It's simply a marketing ploy to get you to respond to that company as opposed to anyone else but there is often little real substance to it. Low rates are attributed to loans that carry very low risk and for larger amounts of money over longer terms. If you carry a higher level of risk because of your credit history or you' re asking to borrow a smaller amount of money over a shorter term, there is less profit attached to that deal for the lender and in order to make it viable, they will need to offer the money at a higher level of interest than before.

The lender can afford to offer unsecured loans for tenants and tenant loans at a lower rate because the amount of profit that they stand to make on the loan over its lifetime can be considerable, even at this lower rate because you will be paying the loan off over a long period of time, which means that interest on the loan will be accruing for longer. Your credit history can make a considerable difference to the cost of unsecured loans for tenants and tenant loans. People with this type of adverse can expect to have more difficulty in getting accepted for a loan than those that have a perfectly clean record. If you have missed repayments to any line of credit, defaulted or ultimately, run into arrears received a CCJ for non payment, this will show on your credit file which a lender will want to have access to prior to deciding whether they will grant you the loan you want. Unsecured loans for tenants and tenant loans are comparatively easy to enquire about but low rate loans are generally more difficult to get because the applicant will need to fit a particular niche to satisfy the criteria, and that is not always as easy as it may seem! Thank you. This article is free to distribute although please maintain any links that may appear in the body or author bio.