The eligibility criteria for the loan is given below:

• Only UK based citizens are allowed

• The minimum age for loan application is 18 years

• Only permanent employees, pension holders and receivers of disability allowances

• Must be earning more than £417 a months

• Must have an account in any bank and a legitimate debit card

• Fulfills the criteria of sponsors and pass the assessment of affordable credit cost

Why is the need of a debit card in the loan?

Debit card is a requirement of lenders as they need to pay the revenues of the loan. No fee is charged by the light financers.

Borrowing money

Candidates can only apply for loans and borrow the money if they desperately need money and they have no alternative resources of income or funding. But if you really need to borrow money or a loan, you must know the long-term commitment of payments and ways of repaying the loan. Also, you need to make careful analyses of your needs and the amount of money you need at the moment.

You should borrow money according to your needs as applying for large amount of loans can increase the charges of interests and the total price of loan. You should know that loan is a long-term commitment and repayment will take a lot of time.

Charges and commissions

In some cases, people have to pay the up-front fees to lenders while applying for the loans, the up-front charge are then eliminated from the total cost of loan. Some financers may allow you to add the charges and fees in the cost of the loan, but you should know that these charges will increase the interest rates and this can easily affect the total loan cost.

Delay in payments or missing the payments will also have a negative impact on the loan. And in such situations, lenders can reduce your debt levels, apply extra chargers and add penalties in the loan as well. These reactions of lenders will increase the amount of loan, which will add extra charge and consequently, increase the overall charge of interest; which could be more that the total amount of penalty.

What is the impact of credit rating on me?

Credit agencies consider a number of factors and review the information of clients before assigning them a rating. A major factor that is considered by the agencies is the past credit history of the participant. Participant is assigned a specific number after the final rating; this numbers is used by the creditor to check the reliability or the chance of defaulting. The creditor is free to interpret the numbers according to his perception and mindset. But these numbers or ratings are not the only criteria of acceptance or rejection of loans and loan applications.

The process of loan application is not limited to the loan credit alone; loan process does not get affected by good or bad ratings. Creditors consider many factors while processing the application of candidates for example; one lender may reject the application of a candidate because he is biased towards perfect or positive ratings whereas some other lenders may accept the same application. The concept of good or bad credit is dependent on the creditors and the amount of risk they are willing to take. However, low or less favorable rating may cause more charges to the applicant. For example, the interest rate of applicants with poor rating is much larger than the rate of those with good ratings or good credit scores.

My Credit Score

Even though, you can increase you credit score by taking loans, you need to be really careful. Loan applications are marked in the credit history and each application for loan is labeled as an enquiry in the history. Large numbers of enquiries indicate that you need funds or it means that you are not able to pay your debts. Credit score is badly affected by the process of initial applications and it can only be improved by making repayments of loan for many months, which will indicate that you are able to manage and sustain your regular payments or repayments. Applying for pay day loan will also have an adverse effect on your total credit score, even if you repay them on time. Mostly lenders reject the loan application if the applicant has taken a payday loan. Missing or not paying the loan will negatively affect your overall credit score and it can cause you some further problems as well. You should not take out a loan, if you are not able to repay the amount in time as it will cause some major problems for you.

You can improve your credit score with the help of some other methods as well, for example, in time payment of bills to prove your reliability to the bank. Loan organizations view the payment history of the applicants and focus on recent activities and duration and timings of the bill payments.
You can also increase your eligibility for loans and reduce your interest levels by increasing your credit scores.