When you are head over heels in debt, you ought to look for ways to improve your Credit situation. However in wake of impending Loan instalments, credit card bills and other outstanding dues, availing a short loan is not going to sort your financial hassles. You would require long term instalment loans to meet the situation.

However when it comes to drawing a long term loan, you need to be smart enough to avail an affordable instalment loan. For, Unsecured long term loans for bad credit profiles would come at a steep rate of interest.

You can regulate the loan rate by applying for either a secured loan with collateral or co applying with a guarantor. However it is easier said than done. During the turbulent times, you are your own guarantor. Many a times, it is better to apply for no guarantor long term loans and staying strong on your hold. Also, putting stakes of your home with disrupted credit situation could be too risky. The non repayment of loan can risk the ownership of your home.

Let’s find out 7 smarts tips to apply for unsecured loan for bad credit situation:

• Beware of loan sharks

Despite FCA’s strict guidelines a lot of loan sharks are operative in the UK. Being a person struggling with credit issues you need to be careful while choosing the lender. You need to ensure that you deal with only FCA registered financial companies. For registered brokers and lenders keep the loan terms transparent and your stakes are safe with them.

• Apply with broker

When you apply with the help of a registered loan broker, they help you locate the registered lenders offering the cheapest loans in the UK. They do not charge any upfront fees for sharing loan advice and ensure soft credit check on your loan request. Thus it is safe to apply with FCA registered loan brokers

• Affordable loan

You should always look for affordable instalment loan so as to ensure the easy repayment of loan.

• Low interest rate

Make sure you compare and negotiate the rate of interest properly. The broker would share all available deals and you should choose judiciously.

• Why unsecured loan

It is important to understand why you need an unsecured loan with bad credit situation. With unsecured loan, you do not have an added stress of repaying the loan. On the other hand secured loans risk the ownership of collateral on non repayment.

• Repayment plan

The broker would help you draft a loan repayment plan according to your net income. You should stick to the plan till the completion of loan. With successful repayment of loan your credit worthiness would significantly improve.