According to ClearScore, the UK’s average credit score improved up to 380 in 2018 that was 346 in 2017. If you have already started to explore the sources for getting a loan you might have come across the term ‘bad credit’. It is the most talked about term in the UK’s lending industry; may it be Govt. financial institutions or direct lenders. The bad credit score is often discussed but we hardly do enough to improve it; the result is costlier borrowing at more intense efforts. The basic reason to experience the disadvantages of very bad credit loans is the lack of knowledge about the phenomena and the processes to determine the credit score
Understanding ‘Bad Credit’ That Makes Borrowing Costlier:
Different credit reference agencies and lenders scale your credit score differently. The higher the credit score means better-priced loan deal at a lower interest rate. Experian and Equifax are the top credit reference agencies used by most of the lenders in the UK.
Can I get
Yes, you can. Loan application at one lending agency doesn’t disqualify you from borrowing because that agency may not be using the different method for assessing your credit score. Just check online with free to use to tools where you stand.
Is it good to use bad credit loan?
The answer depends upon the nature of requirements and your personal financial status. No doubt it is a costly affair that often traps you for longer than you expect but sometimes the urgency of quick financial help from an external financing source justify paying the cost.
Why do you need to apply for bad credit loan?
The typical age bracket at which the credit score is found at its lowest level is 26 to 30 years. The credit score is found at its peak at 55-plus age bracket. It means if you need a loan, in between 25 -50 years age bracket, you are more likely to apply for bad credit loans.
Can you easily get a bad credit loan?
When most of the mainstream regular banks and financial institutions may turn down your loan request just by seeing the low credit score, online direct lenders welcome you. The direct lenders see the bad credit score as the development of unmanageable financial conditions; so, they offer almost all kinds of loans like guarantor loan, personal loan, mortgage loan, unsecured loan, unemployment loan, business loan etc to bad credit borrowers.
How A Bad Credit Loan Can Help You Minimize Financial Worries:
A little story before going ahead: Mr. Jhonson, 35 years old IT engineer, suddenly lost his job. The savings were adequate for 3-4 months survival but he couldn’t get the good job up to the expectations. He applied for and started getting job seekers allowance also but it was insufficient to meet out the expenses of family of four.
His credit score dropped further because of other liabilities like
How to Minimize the Cost of Bad or Poor Credit Loan:
Concluding Note: The perspective towards borrowing makes