How to Manage Too Many Loans with Bad Credit Score?

Kelly Suttle By Kelly Suttle, 9th Feb 2018 | Follow this author | RSS Feed | Short URL http://nut.bz/3_yiubky/
Posted in Wikinut>Business>Accounting & Finance

Whether you have accumulated debts out of ignorance or on purpose, the sooner you begin work on your credit report, the better it would be for your credit health.

How to Manage Too Many Loans with Bad Credit Score?


Right from your credit repayment history to length of your credit history, each factor affects the rate of interest of your new loan. Thus managing your credit score is one of the key steps to good financial health, whether you have just started a job or working as a self employed or somewhere in the middle of your career!

However most of us realise the value of credit score only after we have received a rejected loan application. If you too are struggling to find lenders willing to share short term loans for your emergency situation, it is time to learn how to improve your score and use the power of credit in your favour.

It is always better to be late than sorry. While the main street lenders generally stay away from borrowers with bad credit score, you can confidently rely on private loan players in the UK FinTech industry. For, you can find all sorts of deals for varied credit scores online. The rate of interest, loan amount and duration vary greatly according to your personal situation.

A lot of financially prudent people even opt for refinancing of their student loans or consolidation of their loans via these online lenders. The deals could be exclusively, tailored for you. To add more to your ease of obtaining the loan, you can also use free broking advice from one of the FCA authorised loan brokers.

How to improve your credit worth and avail appropriate loans with bad credit?

The first step certainly is to access your credit situation. You can pull out your free credit report online and find out your exact financial situation. Make sum of how much you owe and what rate of interest (average) you are paying out for the total debt.

Now you can also make note of additional loan you want to borrow. It is also important to figure surplus you have for the loan repayment. In case you do not have enough surplus for repayment of new loan, you may consider consolidation of your loans for longer duration.

You may consider using secured homeowner loans for the purpose. Using a homeowner loan you can successfully avail a long term loan on easy instalments. It is one of the convenient ways to borrow loans despite poor credit score.

What are homeowner loans and how do they work?

As the name suggests, homeowner loans are second charge loans against your home with mortgage. You borrow a secured loan, which is independent of your current mortgage, against the home equity. Being a secured loan, there are lesser hassles to borrow a bad credit loan.

However you must ensure that you avail a loan with easy instalment plan. When you borrow loans at affordable repayment plan, you are more likely to repay on time. Little financial challenges are less likely to hurt your repayment schedule.

Also it is important to repay your homeowner loan diligently for 2 main reasons: Firstly, the lender can take you to the court for nonpayment of loan and claim the rights on your home equity. Next, repaying your loan instalment on time is one of the most convenient ways to build good history. Over the time, when you repay the consolidation loan, you would not only witness a better score but may soon become debt free too!

Tags

Secured Homeowner Loans, Short Term Loans

Meet the author

author avatar Kelly Suttle
My name is Kelly Suttle. I am from London and currently working as a Financial Adviser at Oyster Loan. Visit Here: http://www.oysterloan.co.uk/

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