There are numerous reasons for which people apply for a £4,000 loan. One may want to consolidate existing debt, go for a home renovation project, or buy a new car. If not, this may be due to something as simple as an unexpected bill. At times, one may take a £4,000 loan to meet one’s wedding expenses.
How easy is it to get a £4,000 loan?
It is seldom too difficult. If one lender turns one down, the other is sure to comply. There are cases wherein a borrower needs to get in touch with multiple lenders, to see if one of the lenders is going to sanction a £4,000 loan for him.
In numerous cases, borrowers prefer to not avail of the services of a guarantor at all. This helps keeps matters private. The borrower may not want to inform his loved ones that he is going for a £4,000 loan. There are some other cases wherein the borrower does not have the luxury to have a guarantor when he takes a £4,000 loan.
Either of the cases is routine and commonplace. To address the concerns of such borrowers, lenders make £4,000 loans available. They can be accessed easily as loans without guarantor UK when one needs money now UK.
Having a guarantor is advantageous when one applies for a £4,000 loan
£4,000 is a significant amount. When an applicant borrows £4,000, the lenders are taking a risk. Henceforth, if one takes a £4,000 loan with no guarantor, the rates of interest are high.
On the other hand, if one avails the services of a guarantor, the rates of interest are mitigated. This is because the lenders are sure that if the borrower does not pay back a loan, the guarantor will. This is a kind of a double assurance for the lenders, against losing their money.
So while a guarantor is present, lenders do not mind lowering the rates of interests over a £4,000 loan. Similarly, lenders sometimes keep the rates of interest higher for a £4,000 loan when a borrower does not have a guarantor to vouch for him. This is one of the potential ways to discourage a lender.
At times, having a guarantor or not having a guarantor does not matter. A lender sees both the cases in the same light. This is when a borrower has a good credit score. This assures a lender that he won’t be losing his money. So he does not mind giving a £4,000 loan over a lower interest rate.
But if a borrower has a bad credit score, a lender may want a borrower to have a guarantor with him. Else, the lender may keep the interest rates towards the higher side.
Will I get a £4,000 loan as an emergency loan for bad credit UK?
Yes, you can get a £4,000 loan on a bad credit score, but it is going to be difficult. Lenders are often willing to give away a smaller amount of money as a loan to borrowers who have a bad credit score.
However, when the borrowers who have a bad credit score try and borrow a significant sum of money, lenders are sometimes apprehensive to approve the loans.
There are cases wherein a £4,000 loan helps a borrower overcome or improve a debt. This ensures that the interest paid in total is lower.
Paying off credit card debts using a £4,000 loan
It may be perfectly alright to take a £4,000 loan to pay off credit card bills. But one should do some calculations before going ahead with the idea. One should be sure that this is a more feasible arrangement from a financial point of view.
Let us consider an example, wherein an individual merely makes minimum payments over credit card bills, each month. In this way, the amount of time that will be taken before an individual is debt-free is going to be significant.
In such a case, one can go for a fixed-term personal loan. This will make it easier for a borrower to define a period wherein he will be debt-free.
Using as loan vs using a credit card for making a large purchase
Similarly, if one intends to make a large purchase, taking a £4,000 loan may be the right option to go ahead with, as compared to using a credit card. This is because a £4,000 loan will involve fixed repayments and fixed repayment terms. This ensures peace of mind for a borrower.
By making minimum payments on credit card bills each month, a borrower is likely to pay more over the long term.