Practical tips to help you improve your credit rating and avoid expensive high interest loans
Search Google for ‘Long Term Loans for Bad Credit’; every single day thousands of men and women in the UK type in that exact same term.
Just what motivates them to do that? The reasons are more numerous than the people who ask, way more numerous.
See Jon discuss some of the things to avoid in the video below:[vc_video link=”http://youtu.be/jtDWzENNo9w”]
So why do people search Google for ‘Long Term Loans for Bad Credit’?
Maybe its to buy a shiny new car or to have the house redecorated, or maybe its to consolidate crushing debts, bring the monthly payments down and try and get a normal life back?
Unfortunately from our experience the need for longer term loans are not normally for the nice things in life, but to make the best of a bad situation:
We are acutely aware that with a poor credit rating; your options to get finance are limited and the high street banks are just not interested.
Though having said that since the credit crunch in 2007, there has been an explosion of ‘bad credit’ lenders – some good, some bad, some downright terrible!
So if you are thinking about a longer term loan and have a bad credit history, then we would suggest considering the following points borrowing any money:
This might sound really obvious, but the more you borrow, the more you are going to have to pay back!
Its a fact that bad credit loans are more expensive, so therefore you have to be really careful that you do not over stretch yourself and can comfortably afford the monthly re-payments.
A longer term loan with comfortable monthly payments should be a route to solving problems; not a way of getting you further into debt storing up bigger issues for the future.
We would recommend thinking about the absolute minimum you could get away with borrowing; and only apply for that amount.
One of the main mistakes people make is over estimating the amount they can afford per month and under estimating unexpected expenses and ‘things that come up’!
The result is often a new monthly loan repayment that means once again the money is running out before the end of the month!!
Your goal should eventually be to have spare money at the end of the month; so in the future when those large unexpected expenses to turn up, you have the savings to pay for it; so a long term bad credit loan with monthly payments you can comfortably afford is the first step towards this.
Not being able to afford your monthly re-payments can be a cause of massive stress and a huge burden; so please make sure before considering taking out a loan that you can comfortably afford the re-payments.
Unfortunately there are a number of lenders and brokers out there who are not interested in what is best for the borrowers long as they can lend and get a maximum return then that all they are interested in.
Since the explosion of bad credit lenders, many people have been subjected to huge fees, charges, interest rates and aggressive tactics.
To avoid this we highly recommend taking a bit of time and shopping around for the best loan.[/vc_column][/vc_row]
We highly vet all our lenders, and have many specialist bad credit loan providers who we pass your loan application onto.
From our one application you will then have a choice of loan offers which you can compare and then make an informed decision as to the best option for you.
For more information see our bad credit loans page on our website
Or see how much you can afford to borrow with our loan calculator
[/vc_column][/vc_row][vc_separator color=”grey” style=”” el_width=””]For more tips on responsible borrowing, see 7 Steps to Responsible Borrowing[/vc_column][/vc_row][vc_separator color=”grey” style=”” el_width=””][/vc_column][/vc_row][/vc_column][/vc_row]