4 Factors to Assure Low Interest on Tenant Loan

Moving places and living as a tenant could be challenging in many aspects. Despite several laws to protect the tenant rights in the UK, from landlord disputes to banking and funding hassles, the list of challenges faced by a residential renter is a wide one.

Be it your personal choice or a career move, when you live as a tenant you ought to follow some financially prudent steps. Although main street lenders always look for a loan security before extending an unsecured loan, you can make use of striving FinTech market. A lot of loan partners genuinely extend hassle-free unsecured loans for tenants. You can gain access to affordable loans with the help of an FCA regulated loan broker.

Besides using the professional suggestion, you can avail better interest rate with some of the simple checks:

Job/Income

Whether you are full time employed or part-time employed, your job directly affects your borrowing capacity. Being a renter if you have a high paying job, you could rest assured of getting approved for a loan. A lot of lenders also rate your credit worth according to your employer or job credentials. Thus those who have completed university graduation or are professionally skilled can expect better deals with their jobs.

Debt to Income Ratio

Another factor that affects the outcome of your loan application is your past credit record. If you already have high debt to income ration and too many unsecured loans, it indicates red flags for the lender. You must thus opt for short term loans and ensure successful maturity of each loan. This makes you a responsible and worthy borrower.

Credit score

Borrowing with lower than 600 credit score raises the level of your credit rates. You must thus pay special attention to repaying your house rent and other utility bills on time. By using a credit card diligently you can build a good score.

Past Credit history

The way you manage your outstanding bills and loans say a lot about your credit attitude. A lender always wants to associate with a borrower who is discipline in repayments. If you have been a responsible borrower in the past, it is expected that you would be responsible in future too.

Thus, anyone who is a tenant with untainted credit history can locate a low-interest rate loan in the UK.