Do You Have Bad Credit?
You’re not alone! As many as 25% of UK citizens have bad credit and have to deal with the consequences on a daily basis.
How good or bad your credit is will be based on your credit report which provides an accurate record of your loan and credit history and is used by lenders as a crucial part of assessing the risk posed by a potential customer.
Cold Hard Facts
Although your credit record says absolutely nothing of your self-worth and character, it deals solely in cold hard facts and offers the ideal way for creditors to gauge your potential ability to repay a loan based on your past tendencies.
Because of the importance of your credit rating in the loan application process, it’s important to take a look at it before applying for a loan. If it looks like it needs a little work, applying for a loan and being declined because of your credit score will only make things worse.
What’s In a Credit Score?
Credit scores are one of the most important numbers in relation to your finances. Typically a 3 digit number it is arrived upon by taking in a variety of factors which will be highlighted in your credit history.
Credit reference agencies such as Experian, use a mathematical equation uses this information to formulate your credit score.
There are 5 main items that determine your credit score:
- Payment History
- Amount Owed
- Length of Credit History
- New Credit
- Types of Credit Used
If you find yourself in a position where your credit history precludes you from successfully applying for a standard personal loan, turn your attention to www.solution-loans.co.uk and their range of guarantor loans.
Staying in Safe Hands
Below we have identified 3 reasons why a guarantor loan could be perfect for you.
- No. 1 – Open To Anyone – Guarantor loans are not exclusive to borrowers with a perfect credit rating. If you can find an eligible loan ‘guarantor’ to co-sign your agreement, there is every chance that your application will be granted, regardless of your credit rating or history.
- No. 2 – Perfect For Consolidating Debts – Available over periods of up to 5 years and of sums of up to £10,000, they are absolutely ideal for consolidating a different number of debts.
- No. 3 – Offer Help to Rebuild Your Credit Rating – Two of the primary factors in a declining credit rating are mounting debt and missed payments. By using a guarantor loan to repay a number of outstanding debts, not only will you be able to work towards repaying your total debt, demonstrating a history of making regular repayments can go a long way towards rebuilding a poor credit rating.
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