There are a large number of myths and misconceptions that revolve around low-credit loans. This can not only mislead borrowers but also lead to a sense of fear in their minds regarding the consequences of taking a low-credit loan. Preventing people struggling with financial problems from getting the help they need, these myths discourage them and lead to greater suffering and problems.
However, the truth is that for most providers, a large number of these myths are incredibly misleading and absolutely not true. That’s why today we bring you this article to help you break down the myths revolving around low-credit loans and provide you with accurate information.
Let us separate fact from fiction and resolve the myths around low-credit loans!
Myth #1: Low credit loans are only for people with extremely bad credit
One of the most widely spread myths about low-credit loans is the fact that they are only available for people with terrible credit scores. However, the truth is that while these loans are specially created for people with low credit, they are actually accessible to everyone. Moreover, if you have a better credit score, you might just get a lower interest rate and a much better deal.
Myth #2: Low credit loans come with exorbitant interest rates and fees
When it comes to low credit loans, many believe they might have to pay a large number of fees and unreasonable interest rates. While this may be true for a very limited number of lenders, this is not a commonly occurring phenomenon. In fact, there are a large number of lenders that offer competitive interest rates and charge very low to no fees. Similarly, at Salad Money, we understand your needs and provide you with the best loans as per your requirements.
Myth #3: Low credit loans are predatory and should be avoided at all costs
This is probably one of the most inaccurate myths about low credit loan lenders. Although there are a number of schemes and frauds that might engage in such practices, reputable firms are the absolute opposite. That’s why it is important to do your research before working with a lender, but that’s the case for all kinds of lending. Furthermore, the truth is that reputable lenders like us aim to provide you with fair and transparent personal loans that help you get the financing you need, when you need it.
Myth #4: Low credit loans don't require any collateral or proof of income
While it is true that most unsecured loans do not require collateral, if you find a person willing to loan you money without proof of income, this is a red flag.
Registered low credit loan lenders will always ask for proof of income and do a basic credit history check. It may not be a credit score check but a different method to assess your affordability. For example, we at Salad Money use a unique open banking-based affordability assessment system to help ensure that we are offering you the best possible loans.
Myth #5: Low credit loans are only offered by disreputable lenders and companies
Finally, the most untrue myth revolving around low credit loans is that it is only offered by disreputable companies. As mentioned before, there are individuals and firms that prey upon vulnerable borrowers, however, for the most part, this is not true. The best way to gain trust is if the lender is FCA (Financial Conduct Authority) regulated. Our FCA registration number is 795723.
As one of the most reputable organisations offering employees with fair and affordable personal loans, Salad Money are committed to helping you grow. With a team of professionals always here for all your needs, you can rest assured that our loans are as safe and fair as can be. In addition, all our fees and interest are presented in an easy to understand way.
Choose Salad Money for Fair and Affordable Low Credit Loans
Now that you know all about the myths about low credit loans, you may want to get in touch with us for fair and affordable personal loans. As one of the leading lenders in the UK, we offer loans to employees who have been wronged by the traditional credit score system.
This is possible with the help of our unique open banking-based affordability system that allows you to truly check your creditworthiness. At Salad Money, our More Than Your Score loans are specially designed for people with lower credit scores.
What’s more, with our loans, you can rest assured that you are dealing with a safe and professional lender, who’s always here for you.