Why does having bad Unsecured Loans affect you as a question of people tend to come to me with lots of people in the UK are suffering with bad credit these days many because the rise in living costs and wages not really following the government have just recently announced that they will be put them in a wage up to think it’s £7.10 but most people have said that £7.10 really doesn’t cut it you looking closer to 8 pounds which is causing people to not be asked to pay their bills, this is then forcing people to borrow to then pay their bills which is a never-ending cycle which unfortunately never ever ends well for the person borrowing. This is causing people then to be get get further into debt which is causing their credit to be affected because they are missing their payments on their monthly loans credit cards and other finance.
This is a state of the government has got a lot of the UK into unfortunately this will also then be heavily reflected on the APR that you will then be paying on any future loans or credit of any sort. For example alone for someone with good credit can be as low currently is 3.5% APR alone for someone with bad credit can be as high as 46% APR that a guarantor loan with someone like Amigo loans now that is quite a difference this all coming back to having a poor credit score.
You do need to be aware of the pros and cons of having an unsecured loan is quite widely known the there are brokers within the bad credit market that will take advantage of the desperation of the client to this is something that you need to keep an eye out for when applying for a loan within this market. Lots of tactics tend to be asking for an upfront fee something of that nature this is something as a business we would suggest you never actually look at as this will do nothing but cost you money because nine times out of 10 these people don’t have a loan for you they are just there for your £49 or £69 upfront fee that’s how they get by.
One thing I always tend to do is look online for reviews of the company that are offering you the loan there are many people including ourselves that can put you in touch with lots of reputable sources for loans but personally I would always suggest doing your own research it doesn’t take five minutes to pop the company name into Google and put reviews next to it that will give you an idea of the company you do business with very quickly establish whether there just after an upfront fee which some brokers are at this point that we just say we don’t charge any upfront fees for anything that we do for you or if the loan that they’re offering you just isn’t good.
Unfortunately the days of gone where you could gauge your bank for a loan if you have bad credit as the banks these days rely on their customers having an above average credit score a fortune if you fall into bad credit score category that means the 40 your loan will be declined before it gets past the first stage.
This is why you end up in the unsecured loan market for people with bad credit this is a very tailored market but there are options out there for you some lenders will offer you a better rate if you could provide a guarantor for example what is a guarantor well simply put it someone that will guarantee your payments to that company each month so should you fail to make that payment will struggle to make a payment your guarantor will make sure that your payment is sent to that company each and every month without fail some people don’t like the thought of having to ask somebody to be there guarantor but this can definitely help you get the loan you require.
Another option for people that do suffer with poor credit is to secure the loan against your vehicle this is sometimes referred to as a logbook loan and this will often get you a much better rate but please be aware again this does come with problems should you fail to meet your monthly required payment the company that has provided with the logbook loan are well within their rights to remove that vehicle and sell it to recover any the monies that they have lost personally I do tend to suggest people stick away from this option.
Personally if I was the customer I would suggest you look for a company that will provide you the service free of charge and not require you to secure the funds against any vehicle or require a guarantor they are out there but you will end up paying a little bit more in APR i.e. interest but this will also help you improve your credit score and pushing forward to make sure that next year if should you one alone again that your credit has recovered sufficiently enough for you to be accepted by one the mainstream lenders i.e. Barclays or Halifax or one of your local banks.
As a general rule each monthly payment that you do make to your loan provider will improve your credit score as long as it’s on time and for the full amount each month and this will show is made payment on your experience credit file experience to tell me that on average it takes for stick about six months for people’s credit file to start improving with consistent payments being made on time and for the full amount on a monthly basis.
As a company we pride ourselves on being able to help people with poor credit pleated title out the form above now and we will either call you or email you to advise you of the best options for your personal circumstances.