When talking about the lack of funds, the first image to form shape in the mind is of getting thick bundles of pound notes through loans. On a contrary, the process of getting loans is not as easy as thought. People have different myths and believes that make them worry about getting the money through loans. Only a handful of people have met the reality of loans while the others are still staying in the world of misconceptions. Here are few misconceptions that people believe in and make their financial journey full of hurdles
1. My Bad Credit Score Gets Me Rejected
Not all of the loan appliers have a bad credit score, but for those who have this, it becomes a threat. They are usually scared of the fact that their bad credit score is getting most of their loan applications rejected. However, it is true to an extent but not all. Yes, your credit score surely plays a vital role in the approval of the loan but having a bad credit score never means that you cannot get a loan at all. Loans like long-term loans with bad credit are there to ease the situation.
2. I Do Not Have Collateral, I Cannot Get Loan
Most people think that providing collateral is mandatory for a person, who is in need for a loan. But, it is not the same. While borrowing a loan, the first important thing is providing a guarantor. When a person is not in a condition of the same, the next crucial factor is to provide the collateral. If a person fails to provide any of them, he/she can still get funds through no guarantor loans. One does not have to go through the struggles while making an application for such loans.
3.People, Who Are Financially Desperate, Need Loans
One of the biggest misconceptions that people believe in is this one. Resultantly, people have now started considering it as a reality. If you are also someone, who thinks that loans are mainly for the people, who are financially desperate, then you are sadly mistaken. Not all the people are in debt when they opt for loans. For instance, a huge population selects the guaranteed loans in UK for buying a new house. It does not mean they are all in debt. One big reason for the same is unavailability of big cash amount. Another is the unwillingness to put all the money into one transaction. Many more reasons can be there, depending upon the requirements.
4. Loans Are An Alternative To Financial Problems
Up to a limit, it is true but not totally. Yes, they help in being of great help at the times of financial problems. You can take help from loans once or twice or maybe thrice but not always. Relying over them for every time when you face a financial shortage is not what is possible. There can be great chances that excessive loan amounts result into a situation full of debt for you.