Your refrigerator stopped working and now needs an expensive upgrade?
Your laptop fell, and now you need to buy a new motherboard?
You found an awesome travel deal, but are short on cash currently?
Borrowing money was always a strenuous and long-drawn-out process. If you had to get a loan, you would need a million documents and a lengthy timeline to get all the approvals. We wouldn’t say you don’t need to still go through these processes, but there are now simpler and quicker options for at least small borrowings.
Incorporating credit/debt in your financial strategy is not daunting anymore! It is a global economic change that not only lets you have a more fluid cashflow but also lets you build your credit score, that in the long run can help you with insurance premiums, rental deposits and mortgages.
If you are looking to get a credit card for bad credit uk, you should be smart about your repayments, your credit utilisation and how often you apply for credit from different borrowers.
Ask Yourself These Questions First
Before you think of dabbling your feet in a credit infused cash flow, ask yourself a few important questions:
- Is there a need to spend the money?
- Can you finance the purchase or spend in some other way?
- Can you afford to pay back the money you intend on borrowing?
- Is this good money borrowing or bad money borrowing?
Convincing yourself to borrow cash in any format is step one, figuring out what type of credit is right for you is step two.
Like any thought out decision, weight your options and research the right type of credit for your requirement. Keep the following things in mind while shortlisting your borrower:
- What is the interest rate and the APR on your borrowing?
- What is your total repayment amount?
- What are the penalties for missed or late payments?
How Can You Safely Borrow Cash?
One of the easiest ways to borrow money in today’s day and age is Instant Personal Loan. They get approved within 1 to 48 hours of application. They are flexible credit options with minimised costs and easy management. Though personal loans are typically best for larger borrowings, we now have a choice of small loans, which range up to £1000.
If used responsibly, these loans can insure your urgent payments are taken care of. Not being able to make unexpected financial payments can be stressful.
One of the better Instant online Personal Loan platforms is SafetyNet. You can connect your bank account with SafetyNet, and get personalised services for your credit and financing needs.
You can borrow from the credit limit available to you at any time and have a flexible repayment structure best suited for you. These creditors offer a revolving line of credit with no minimum or maximum repayment terms. This flexibility enables you to plan your credit smartly and efficiently.
You can also use their free money management tools that enable you to understand how much you owe and how much money you can and should borrow. You can even breakdown your spendings and learn how to budget smartly and responsibly.
When Should You Think About Using SafetyNet?
- When you are looking at borrowing an amount up to £1000
- You want to use smart top-ups and avoid overdraft fees
- You are willing to repay your credit along with interest within 40 days. The interest is generally charged at 0.8% per day.
How Can You Calculate Your Interest And Repayment Amount?
It doesn’t take a genius to figure out the interest rate and total repayment amount for a loan. You can understand the process with an example:
Let’s say you want to borrow £500 to upgrade your laptop. You can repay your money within 40 days, and your interest is charged at 0.8% per day. Therefore, your daily interest will be £4 (0.8% X £500).
If you repay your amount on the 40th day, your interest payable will be £160 (£4 X 40 days). Total amount repayable at the end of 40 days will be your interest rate and the original loan amount combined £660 (£160 + £500).
If you choose to repay your credit within 10 days of borrowing, you can do that as well, and pay your interest only for the period borrowed, which is £40 (£4 X 10 days). Therefore, the total amount repayable at the end of 10 days will be £540 (£40 +£ 500).
Knowing this formula will help you determine how to manage your credit and make your repayments in a timely fashion to save up on higher interest.
SafetyNet lets you avail the option of automatic repayment and manual repayment. In case of automatic compensation, SafetyNet will ensure that your account does not have less £30 over an above your SafetyNet Level amount. You can change and optimise that as per your requirements as well.
Would You Be Eligible For A SafetyNet Account?
Anyone can apply for safety net credit regardless of poor credit score, payment history, etc. Some pre-requisites are:
- You must be a UK resident/citizen, aged 18 years or older.
- You must have a regular stream of income.
What Is The Application Process For SafetyNet Credit?
SafetyNet will check your bank sort code along with your spending history via your account number. On the basis of the details shared, your credit score, and their affordability assessment, you will be given a credit limit going up to £1000.
New customers tend to get a credit line of up to £500 to begin with and progressively increase to £1000. The online application process can be as quick as 5 to 8 minutes. After the verification, you can avail the credit line within 15 minutes of approvals.
Note that you can apply for a SafetyNet account even if you have a poor credit rating. It might affect your credit limit by a margin.
The goal should always be to plan for the unexpected and save money which you can fall back on in the long run. That being said, in case of instant cash requirements, you can fall back on options like SafetyNet. The practical aspect is that you have the flexibility to choose the credit amount and how long you want to borrow for.