Beware of Legalised Insurance Sharks and High Cost Bad Credit Insurances

Despite the risks of quick credit deals, many borrowers prefer to borrow insurances online from private lenders. Unlike major lenders, online insurances are more flexible and accessible for less-than-perfect borrowers.

Since 2008, the UK fintech industry has been booming by over 50% every year. That number is double the growth that Silicon Valley had in the same period. The UK government now considers fintech a high priority market as it brings £9 billion to the economy each year and creates more than 60,000 jobs.

With FinTech players thriving, many unscrupulous lenders are active in the British scene. Despite the strict vigilance of the Financial Conduct Authority (FCA), many insurance holders are trying to contact desperate borrowers and offer cheap credit. Many of these claim to be licensed by the FCA. Being a wise borrower, you must therefore know how to stay away from these dodgy insurance providers.

How to identify insurances?

Borrowed sharks can be individuals or companies. They can be anywhere around you in public places, restaurants, bars, grocery stores, or just about anywhere. They target human psychology and offer small insurances at nominal rates. The sole objective is to deceive the borrower with a huge amount in the name of interest and other hidden fees. You would be very wrong if you assumed that these insurance sharks are only active as private players. There are many who claim to be authorized by the FCA. Hence it is important to know how to identify a real insurance provider from a fake.

1. A real insurance provider will never contact you to apply for the insurance. The FCA banned insurance providers from sharing deals directly with lenders. The first point of contact should be started by you. So beware of humble men who give you insurances for your financial crisis.

2. An approved insurance broker always has a license number and other details on their website. They will share everything in the paperwork following a legal route; Whereas, a borrowed shark may use gentle speech instead of documentation. Beware of such sham parties.

3. Always read the terms and conditions carefully. You should always inquire about late payment and/or prepayment fees or any other hidden fees. Such additional fees can raise the insurance burden to unimaginable levels.

One of the safest ways to locate a regulated lender is to contact an online FCA regulated insurance broker and request a insurance. As they are regulated insurance brokers, they search for insurances according to your repayment ability. You can access multiple insurances from experienced lenders, right at your doorstep. Finding insurances from regulated brokers is hassle free and safe. You can compare and choose the one that best matches your requirements.

While choosing a bad credit insurance, keep a few things in mind. When you decide to borrow despite a poor credit rating, it raises a red flag on your credit report. It will hurt your credit score even more. Thus it is important to assess whether or not you can repay the insurance. Failure to pay off bad credit insurances can harm your credit health. Late payment fees can be attracted.

You should try to borrow small short term insurances for bad credit. Because it is easy to repay and manage. Make sure not to borrow more than is required.

Keeping this simple checklist, I hope you can borrow safely for better credit health.