Every now and then we are in a financial trouble when some or the other situation demanding extra spending pops up or our earnings reduce. And these desperate times often call for desperate measures. Thanks to the developing financial infrastructure, the number of options for personal credit is on a rise. Credit cards, payday loans, bridge loans, personal loans are some of the many options you generally resort to in case of a financial distress. But the cost and future consequences of these credits are often killing. The trouble further compounds for those who do not have a perfect credit history.
One of the oldest and convenient methods of getting a credit is pawn lending. The pawn lending industry in UK is well developed and is present since time immemorial. Pawn broking is an integral part of the credit industry which is regulated alongside banks by the Financial Conduct Authority. There are over 2,000 pawnbrokers in the UK. Better innovations are now changing the shape of this industry.
The latest concept that has the potential to revolutionise the credit industry is Unbolted. It is an online-only peer-to-peer lending platform that lets consumers use their high-value personal assets to access low-cost pre-approved loans of up to £1,000,000. This unique idea brings together the concept of peer to peer lending and pawn lending. It provides a transparent, cost effective, and quick method of securing credit for those with valuable assets.
On comparing a loan from Unbolted with other common options like credit cards, payday loans, personal loans or offline pawn shops, you will find that there are various advantages that Unbolted enjoys over these options.
Many Advantages for Borrowers
One of the most important advantages it provides you with is the ease to get credit without being troubled by your credit score. This is possible as the loan is provided solely on the basis of the valuation of your assets. You can get a loan easily from unbolted even if you do not have a great credit score, which is not possible with other options like credit cards, payday loans, or personal loans.
Credit card is the most sought after option for most people to make their ends meet. But credit cards can often lead you to a debt trap. Unbolted charges interest on per day basis and thus allows you to repay the loan at anytime. In case you default, your liability is limited to your asset under mortgage. Moreover the interest rates charged by most credit card companies are far more than what Unbolted charges. For example for a £4000 loan, rate for Unbolted is around 33.1% and for credit card companies it ranges from 34.9% (Capital One Classic, Barclaycard Initial) to as high as 139.7% for Provident Gold.
With a payday loan, you may end up in a vicious cycle of debt because of the notoriously high interest rates that they charge. Moreover if you are unable to repay, it will degrade your credit score. Unbolted charges a much lower rate and the impact on your credit rating is zero.
Compared to offline pawn stores, Unbolted offers much more transparency and ease. Because of the unique business model and peer-to-peer lending, the rate of interest charged is much lower. Valuation is fair and you can get loan up to 80% of the value of the asset unlike real pawn stores who undervalue your asset and offer only 40-50% of it as loan.
In case of default, the asset is sold to realise the value and any excess over the amount of loan is refunded to the borrower. This is a unique advantage which no other option provides you with.
Unbolted allows you to unleash the potential of getting credit to meet your short term needs with the help of your possessions. The hassle of getting credit is removed and the cost is rationalised so that you can achieve your dreams and live a better life.