There are not many borrowing options for first time borrowers. There are a number of reasons for this but there are some things that you can try and it can be worth considering whether they will work for you.
Lenders will like to check your credit record before lending you money. This is because they will want to check whether they think that they will be able to trust you to repay the loan. They will look for indication of this by checking your past borrowing record. Normally they will be looking to see that you have had a loan and that you were able to make the repayments. However, if you have had a contract and kept up with payments on that or make regular bill payments, this could be enough for them to be happy to lend to you. However, it will very much depend on the lender as some will be a lot fussier about their requirements and might want to see lots of evidence of repaying before lending. It may also be the case that you have not got any contracts or made regular bill repayments so there is nothing to show that you are capable of making regular payments. It might therefore be the case that you will struggle to borrow money for the first time from a traditional lender. They will probably want to see evidence that you can be trusted before they will lend to you. However, it might be that short-term lenders might be able to help you out with this.
Short-term lenders tend to lend to those that have a poor credit record as well as those that have a good one. This means that if you are likely to be turned down by traditional lenders, then you might still be able to get a loan from them. This means that you do have some borrowing options. These types of loans tend to be used much when you need money in an emergency, but this can depend on the specific short-term loan that you try. The payday loans tends to only be for a few hundred pounds, but if you pick a guarantor loan then you can borrow thousands. There are different types which will provide borrowers with different amounts of money as well as different repayment schedules. You will need to look at the different loan types in order to see which one will be the most suitable for your needs. Choose carefully and spend time doing this as it could make a big difference to your loan experience.
You will need to be careful when borrowing money though. If you want your credit record to improve then you need it to look good. This means that any loan that you do take out, you need to be sure that you will be able to repay. As long as you repay it on time, you will have the best chance of it improving your credit record. Potential lenders could see this as a positive thing and be more likely to lend to you in the future. However, all lenders have different criteria that they use to judge potential borrowers on. Some might be impressed by the repayment of a loan but others may be worried that you have used a short-term loan. They might feel that this is an indication that you could not use traditional lenders and see it as a reason not to lend to you. It can be really difficult to know exactly what the best thing is to do in order to improve your credit record. Keeping up with all repayments, bill payments and contracted payments will be an extremely useful thing to do so always make sure that you do this. If you do not have your name on any of these things, then try to be. Perhaps your partner or a person you share a home with has their name on it. Try to get things put into joint names or changed to your name, as long as you are confident you can pay it and this will go in your favour.
So, if you need money and are a first-time borrower then it could be the case that only short-term loans will be an option for you. They can be a useful way to get a loan and there is a possibility that they may also improve your credit rating. However, it is wise to make sure that you are really confident that you will be able to repay the loan. If you do not repay it then your credit report will suffer and you will be worse off than you were before getting the loan. It is a big decision and you will need to take time to think it through carefully.