Let us presume that you are applying for unsecured short term loans which do not necessarily require a very impressive credit score. If you have a fascinating credit history and you have security to use as collateral or guarantor then there is seldom any hassle in the application or approval process. The need for smart loans in UK is more among people who don’t have a great credit score and really don’t have any major asset to pledge as collateral.
There are many types of smart loans available at your discretion. Some will never ask for any security and cosigner. Some will have provisions wherein you can furnish some kind of security or use someone as your cosigner. There is good reason for you to consider such prospects.
Using security can speed up the application process. If your income is on the fine line of getting accepted or discarded by the lender of smart loans, then your security will push you over the line and you would get approved. The application process itself will be swifter. The same will happen when you use a cosigner. A cosigner with similar or better financial profile than yours will always help your case. You may get the loan approved a day sooner or you may get approved whereas you would be rejected without the security or cosigner.
Having some security or a cosigner will also allow you to claim a higher loan amount. Your financial profile, liabilities and credit score may cap your eligibility. You may not be able to get the loan amount you want or the prospect of asking for a higher loan amount will be negligible. With some security or a cosigner, you can comfortably ask for a higher loan amount. Many lenders of smart loans or short term loans prompt people to furnish security or to have a cosigner if they want a higher loan amount