12 Month Loans

12 Month Loans – Cash For Any Purpose

Managing the household budget can sometimes be a real challenge. Sudden expenses are always cropping up that test the limits of your savings and your ability to make ends meet. It’s at times like these that a small short-term loan can be the lifeline you need today to get your budget back on track. But getting the loan you need when you need it is often easier said than done. Particularly if your credit score is less than perfect.

Fortunately, there are lending options available that can help you bridge the financial gaps in your budget. These short-term lending products come in a variety of shapes and sizes, ranging from simple payday and instant loans to the more flexible 12 month loan.

What is a 12 Month loan?

A 12 month loan is simply a short-term personal loan. Technically, 12 month loans fall into the same basic category as payday loans. However, unlike the more common same day loans they provide borrowers with a longer repayment schedule. As the name suggests 12 month loans give the borrower, well, 12 months to repay their loan.

A 12 month loan can help to restore some stability to your personal finances. The funds provided can be used to cover sudden spending needs and the extended repayment period gives you enough room to get back on your feet without too much additional financial stress. It also allows you to repay the loan in smaller, monthly instalments rather than paying it back in one larger, lump sum over 30 days.

12 month loans can be used to cover a variety of needs including:

• Home improvements
• Car repairs
• Traveling costs
• Medical bills
• Debt consolidation

How much would you like to borrow?

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Representative Example: Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £605.96, an annual interest rate of 59.97% (fixed). Representative APR: 79.5% (variable).

How Does Your Credit Rating Impact a 12 Month Loan?

Whenever you apply for a loan or borrowing of any kind, your credit score is going to come into play. Direct lenders will refer to your credit rating to determine your overall risk as a borrower. The better your score the more likely it is a lender will approve your loan request.

Over the course of your lifetime, credit reference agencies collect information regarding your financial habits. This information is used to assess your overall creditworthiness and assign a rating that lenders can refer to when considering loan applications.

Your credit history reflects the following key factors:

• Active Credit Accounts – This includes major credit cards, store cards and other forms of credit. Too much debt across the board suggests to credit reporting agencies that you may be overextending yourself. This can result in a drop in your credit score and make it less likely for lenders to borrow you money.
• Account Balances – Outstanding debt is an important factor in your credit rating. How much debt you are carrying, and how you are handling that debt, plays a large part in determining your credit score.
• Payment History – A history of late or missed payments will naturally count against you and cause your credit rating to tumble. You can regain some lost ground by getting your payments back on schedule and discharging as many of your outstanding debts as possible.
• CCJ’s or Defaults – A history that contains one or more County Court Judgements or bankruptcies will keep your credit score at the lower end of the rating scale. Recovering from a CCJ or bankruptcy takes time and hard work.

What to Consider When Applying for a 12 Month Loan

A 12 month loan, like other short-term alternative lending products, are specifically designed to serve the needs of people with less than perfect credit scores. They provide fast cash to consumers facing a budgetary shortfall. But any loan carries some degree of risk, and borrowers should take a moment to consider whether or not a 12 month loan is right for them.

Before applying for any loan ask yourself the following questions:

• How much money do I need? – Short-term loans provide much needed funds to help people cover immediate expenses, even with bad credit. They are not a substitute for longer term financing needs such as mortgages or car loans. 12 month loans are good fit for customers who need to borrow a couple of thousand pounds or less. If your need is greater than that a 12 month loan is not a good fit.
• How much time will you need to repay your loan? – The majority of short-term loans (payday, instant, emergency, etc) are meant to be repaid within weeks or months. 12 month loans obviously allow for a longer repayment schedule, but with that extended repayment period comes increased interest, even if the monthly amounts are lower.
• Can you afford the loan? – This is a question only you can answer. A 12 month loan only makes sense if you’re sure your budget can support the payments. While you will have longer to repay your loan as compared to other short-term loans you must still budget accordingly.
• How quickly do you need the money? – Alternative lenders specialise in providing fast cash to people in need. In an emergency these instant loans can be a life saver.

How to Apply for a 12 Month Cash Loan

At Pounds to Pocket we make applying for a 12 month short-term loan quick and easy. All you need do is fill in the online application to get the loan process started. The fist step is to decide how much money you want to borrow. Then we will need to collect some personal information from you.

To qualify for a 12 month loan you should meet the following requirements:

• Must be 18 years of age or older.
• Must be a valid UK resident.
• Must have an active UK current account.
• Must have regular income either via employment or benefits.
• Must provide a valid address, phone number and e-mail.

Once we have collected the necessary information we can begin processing your loan request. Our lending partners will initially perform a soft check of your credit. This will not show up in your credit history and will not harm your credit score.

After we have reviewed your application, one of our lenders will present you with a loan offer. You may accept or refuse the offer at your discretion. If you decide to accept the loan offer the lender will then perform a so-called hard credit check. This will show up in your history and will be reflected in your credit score. However, at this point, you have already been fully approved for your loan and the money should be on its way to your account.

The entire process can be completed online and in most cases your money can be in your account by the next business day – sometimes even same day.

Repairing your Credit Score

Short-term loans provide borrowers with an opportunity to rehabilitate their credit scores. 12 month loans are particularly helpful in establishing a history of on-time payments and smart debt management. Remember, every payment you make helps to repair your credit rating, and when you finally pay off your loan it will help to boost your overall credit rating.

If you would like to learn more about repairing your credit history and managing your personal finances there are some UK government resources you can contact for advice and counselling. These services are free for use by all UK residents:

• The National Debt Line
• Money Helper
• Step Change