Long Term Loans - What to Expect
Whenever you feel the shortage of cash to meet any of your need, you have a wide variety of online lenders offering multiple loan products with fast funding techniques.
The concept of lending has come the long way, but it still seems to be complex to comprehend when you have to choose between many offers like secured, unsecured, instalment, single-repayment and long term loans (also known as instalment loans). There are so many options that you cannot choose - an embarrassment of riches.
The major difference between short term and long term loans is the repayment length. The former is repaid in lump sum and the latter is paid in instalments. Any loan that allows you to pay off the debt over a specified period for more than one year is known as a long term loan. If you are looking to apply for it, Forever Finances is the right lender.
Do you want substantial funding to fulfill your personal or professional goals? Long-term loans are the perfect solution where you can borrow for more than one year that will be on low-interest rates than small loans
Long Term Loans-Useful in Varied Forms
Availing funds for a larger amount and duration allows you to accomplish big ambitions of your life. You have the following long-term loan options to utilize for varied purposes:
1. Car Loans, whenever you seek the desire to purchase a new car of your dreams or repairing the existing one, these loans bring funds for you up to £25000.
2. Mortgages, buy a property with no financial hassle like bad credit, low income. Mortgages are the long-term loans that are applied to fetch amount over £100000 and for a longer duration.
3. Debt Consolidation, multiple debts create many financial problems. It would help if you erased them soon that can be done through long-term loans in the UK. One payment clears off all the pending dues, and the benefit of low-interest rates is also there.
4. Home Renovation, whether it is a need or a desire, these loans fulfill your aspiration of making your home more beautiful to live. Long-term home improvement loans are enough to give your living space a complete new look.
5. Business Loans, start your venture or add more infrastructure to the existing one with availing long term business loans for a longer duration.
Some Vital Pointers
While availing long-term loans, you need to keep these tips in mind:
- These loans should be backed up by collateral;
- The process of loan approval may take times, but direct lenders can provide on the same day;
- Proper repayments allow you to improve the credit ratings;
- Lower interest rates than short-term loans relieve the borrowers more.
The eligibility of taking out a loan depends on the following factors:
- Your income
- Your credit score
- Length of your loan
- Security against the loan
Benefits of Long term Loans:
Borrowing for a large amount comes somewhere as a necessity, especially when your savings have been tired. At that point, long term loans help solve a relatively bigger financial crunch.
At Forever Finance, we have brought personalised deals on long term loans, which include the following benefits:
These loans are much more affordable than short term loans because you will pay your debt in instalments over a specified period. Featured with amortising facility, your instalment will go toward both the principal and interest, making easier for you to repay the debt.
- Lower interest rates
The interest rates for these loans are usually lower than small loans. Since these loans are usually secured, it mitigates the risk of the lender. It can take possession of the asset if the borrower defaults. Therefore, you always have the opportunity of availing long-term loans on low-interest rates.
- Same day Payout
Unlike other direct lenders in the UK, we have the advantage of allowing long term loans on same day payout for our borrowers. The loan procedure will be as same as short-term loans i.e. online. Not many papers and soft approach towards the credit check policy do this for you.
- Apply with no collateral
Are you surprised? Yes, you have the opportunity to apply for long term loans with no collateral. We make this a possibility by accepting your loan application with the guarantor’s signature. It means when you have the guarantor, you do not need to secure the borrowed sum.
- CCJ is not an issue
There is one more benefit that makes us quite different from other private creditors in the UK. We accept long term loan application of those with CCJ (County Court Judgement) against their name. The approval comes if your recent financial commitments are perfect.
Longer period makes the loan more manageable. Look at the table below:
Salient Features of Long Term Loans at Forever Finance
We are the responsible private lender in the UK and prepare borrower-friendly loan deals, including competitive APRs and flexible repayment terms. We first analyse your financial capacity and affordability to manage the loan throughout the term.
Apart from benefits, here are the FEATURES of our long-term loans:
- Online application - Apply for long-term loans online with not many obligations to follow. You can submit the loan application by sitting at your home or office. It also paves the way for instant loan approval and same-day fund transfer.
- No upfront fees - Giving surprises to our borrowers is not our nature. We keep everything transparent during the loan process and do not charge any upfront charges. You only have to pay the interest rates, which are finalised according to your affordability.
- Variable repayment terms - Repayment terms may worry any borrower if there is any irregularity in the income. When you have a flexible repayment term from us, you can have peace of mind. We allow flexible terms in which you can select one, which is manageable from your monthly earning.
- Approval on Part-time Income - Unlike other direct lenders in the UK, we are fully prepared to offer long-term loans for unemployed people. However, they must be earning a sufficient part-time income to ensure the repayments as per the schedule.
When Should You Take Out a Long Term Loan?
While short term loans are more easily available, you may not consider the importance of Instalment loans. Both types of loans have their own importance. With long term loans, you can take out a large amount of funds that is not possible with short term loans. These funding sources can be used for different reasons, the most popular one are given below:
- Business needs
Get wings to your success by taking out a long-term business loan in UK. These loans do not necessarily need to be secured against any asset, depending on the lender’s condition. You can use these funds for various reasons such as:
- To increase working capital
- To buy equipment
- Office renovation
- Investment in a new premises/project etc
- Talent acquisition
- Business expansion
- Home improvement
Do you want to add to the value of your house? If yes, you might be looking forward to having loft conversion, extension, renovation of the interior, construction of the patio etc. If your savings fall short of a small amount of cash for refurbishment of your house, you can take out personal loans for home improvement. Otherwise, you will apply for long-term loans.
- Equipment Purchases
Yes, you can apply for loan term loans to purchase significant equipments. Suppose you want to put CCTV at your home or an iPhone or add equipment to your office. These loans bring quick funding access to your bank account.
- Funding the Wedding Expenses
Is your auspicious occasion of the wedding coming closure? Do you not have enough funds to carry on more expenses for the event? There is nothing to worry about because our long term loans are there to fund those expenses. Borrow funds and do whatever to celebrate this once-in-a-lifetime moment.
- Cover up Education Costs
Studying with a complete concentration requires no obstacle coming from any end, especially the financial one. Therefore, loans for longer duration are perfect for bringing funds for multiple education expenses, such as tuition fees, maintenance costs, and many more.
Can You Get Long Term Loans for Bad Credit?
A lender will approve your application only when you have the repayment capacity and your credit score is not below average. Forever Finances provides term loans to poor credit borrowers too. You are allowed to apply for these loans if you have been juggling with your multiple debts and you have been refused by lenders to have a debt consolidation loan.
Long term loans for bad credit allow you to put an asset as collateral to have reduced monthly repayments over an extended period. However, it is not mandatory. If you have steady source of income and you prove that you will keep paying off instalments of your debt, we will not ask you to put collateral.
Besides, suppose your recent financial commitments are satisfactory, and income is capable enough to maintain scheduled repayment. In that case, we even consider your application for long term loans with no credit check and no guarantor. However, we still consider your affordability before approving the loan deal for you.
Can You Apply for Long Term Loans for Bad Credit with No Guarantor?
It is possible to get a bad credit long-term loan even if you are taking out it for any reason other than consolidating debts. In this situation, you may end up with paying higher interest rates, yet lower than other lenders. Further, the term for such loans is usually shorter because of high default risk.
Before you apply for long term loans for bad credit with no guarantor, we recommend you to figure out ways to improve your credit score.
Here are some recommendations to follow before submitting your loan application:-
- Pledge Collateral if Possible
You have no guarantor, and we do not have any objection to this. Still, you can make your loan application stronger by pledging the collateral.
Yes, if you do so, then you can get more funds for your long-term financial goals. Besides, you benefit from lower interest rates because your collateral keeps the lender at low risk.
However, we still approve your application for long term loans with no guarantor and no collateral, but your credit score should be good enough. Besides, you must be earning a good monthly income to manage the higher interest rates.
- Keep your employment status alive
While making the loan repayments, it is necessary to keep your income status alive. We are the modern-age lender and follow the flexible lending policy. We do not mind if your credit score has not been good or you are living on rent.
As long as you are earning a good salary, you can get approval on long-term loans.
If you are earning a sufficient full-time salary, approval does not seem far from you. However, we also consider those individuals who are earning part-time income. In such a scenario, we have made the guarantor’s presence mandatory.
- Show your recent financial commitment
Your past credit score may not be acceptable, and that is why mainstream lenders have denied you. The direct lenders in the UK, on the other hand, are more flexible and do not consider your historical background while approving the loan applications.
We want to analyse your current financial performance and commitment. If you are paying your current bills on time or making timely loan repayments, we can consider your loan application.
All these factors will help you to improve your credit score and open up more lending opportunities in the future.
- Do not borrow more than your need
You want to apply for the loans because you are facing a significant financial mess. You want proper funding to come out from the challenging situation. It does not mean that you borrow funds without any limit.
This is the biggest mistake that most borrowers make. They tend to borrow more than their needs, which in the end come as loan rejection.
As the responsible direct lender in the UK, we offer only affordable deals to borrow as per your current financial needs. Remember, you have to repay the loan later, and any missing repayment can cause your credit score badly.
- Become a responsible borrower
We feel proud to offer responsible lending, but we also want you as our responsible borrower. In case you want to make early repayment or have no other option but to repay late, feel free to contact us as early as possible.
We vouch for offering the best arrangements so that you can avail of the loan benefits without any burden. If you are sincere, your bad credit score cannot impact your loan chances. You always have a scope of improvement.
LONG TERM LOANS FAQs
Can I get a long term loan with bad credit and no guarantor from direct lender?
Yes, you can get long term loan with bad credit and no guarantor. The direct lender like us can bring the loan approval only on the basis of your income. However, the interest rates will be on the higher than usual.
How can long term loans help pay off debt?
Long term loans bring the opportunity to get the larger funding that goes for quite a longer duration. You can pay off the larger debts and improve the chances of credit score improvement too.
Which is better long term or short term loan?
Both the loan options have their own importance. The long term loans are ideal for significant financial goals while the short term loans are suitable for the financial emergencies or paying off current small expenses.
The long term loans carry lower interest rates, while the short term loans are the higher interest rate loans.
Do long term loans have higher interest rates?
The long term loans are generally the low interest rate loans because the security is involved or the guarantor’s signature. However, if you have the bad credit score, then in that case, you may have to pay the higher rates, otherwise not.
Where can I get a long term personal loan?
You can get the long-term personal loan from any of the conventional lending institutions like banks or from the new-age direct lenders. The traditional lenders follow the stricter policies than the online lenders. ForeverFinances, as being the modern-age lender, offers long term loans on comparative interest rates.