The option to swiftly access additional finances when needed has aided an untold number of families in keeping their heads above water. In addition, because of the rising consumer demand for short-term loans, numerous legitimate lenders have entered the market and begun to offer these short-term loans.
Can I Get A Loan At 18 Years Old?
Getting a personal loan when you're young and have no credit history can be difficult. Most lenders want to see proof that you can handle your credit responsibly before approving a loan, and you'll nearly always need a consistent source of income.
Even if you're under the age of 18, you might be able to get a first-time loan. First, however, you should think about the different sorts of loans available, which ones could be best for you, and how you might improve your chances of getting approved. There are also other possibilities to consider.
Pros And Cons Of Taking Out A Loan When You're Young
While saving up for a new car or an academic would take a long time, you may acquire the money you need quickly with loans for young people. Moreover, building your credit score by paying on time can help you borrow money in the future, such as for a home.
A loan is usually a medium to long-term debt commitment, which could prevent you from building up savings. There is little flexibility with personal loans if you want to repay the debt before the end of the loan term. If you get into financial difficulties and miss repayments this could damage your credit score.
Do All Lenders Accept 18-year Olds For Loans?
Since some of the lenders take into factor the credit history of the potential borrower to determine whether to provide a loan, a majority of the young people can’t avail of loan benefits from such lenders. However, many other lenders empathize with these young aspirational people and provide them with loan opportunities based on their income levels.
|How much can I apply for?||£100 to £5,000||Zero-obligation quote|
|Length of the repayment||1-36 months||Quick payout|
|Interest rates (variable)||49.7%||Zero paperwork|
|Can I apply with poor credit standing?||Yes||Bad/low credit considered|
|Do I have to pay a lump sum?||No||Flexible repayment|
|When am I allowed to apply?||24/7||2-min simple application|
How Can 18-Year-Olds Improve Their Chances Of Getting A Loan?
Get the Electoral Enrollment
This provides a simple way for the lenders to validate your identity and thus, it is the best way to boost your credit score quickly. In fact, this is important when you apply for a loan.
Correct Errors on Your Credit Report
Sometimes your credit report may contain mistakes that would pull your credit score down and cause the lenders to say no who otherwise may have said yes for credit approval. Check your credit report carefully and contact the competent authority to remove them.
Pay Bills Promptly
Remember that missed payments adversely affect your credit ratings, so try to keep up with paying off the bills on your name. You can choose to set up direct debits so you don’t miss payments.
Mind the Ceiling of Cards and Overdraft
Always mind the ceiling limit of your credit cards and an overdraft. Avoid borrowing beyond your credit limits and agreed overdrafts, as this may indicate to potential new lenders that you don't manage your money wisely.
Looking to Borrow Money Easily?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
Getting a loan for 18-year-olds is no easier than cutting a mountain using a chisel and hammer. This is because some creditors assess their potential borrower’s credit history before determining whether to approve the loan application or not. UKBadCreditLoans help such young people with legitimate and responsible lenders that provide them loans based on other factors, although, they do perform a credit check when you apply for a loan, they take into consideration other factors like income when providing the loan.