Practical tips to help you improve your credit rating and avoid expensive high interest loans
With mainstream lenders shunning bad credit borrowers, specialist firms have stepped up to the plate to fill the void. However, many seek to exploit the situation by charging sky high interest rates.
In the article below, we shine a spotlight on the 3 things which you must not do when looking for quick cash.
Payday loan companies are the masters of marketing. For the uninitiated they can often seem like the ultimate short term, quick loan.
However, it rarely takes long before borrowers find out that they are hugely expensive, potentially dangerous and should be avoided wherever possible.
With possible consequences including rapidly escalating charges for missing payments and a red flag left on your credit score which may impact your chance of obtaining a mortgage in the future, payday loans should be removed from your thought process completely.
If you need any further convincing, check out the following BBC article – Payday loans: 10 things you should know before you take one – which covers all of the inherent dangers of this type of loan.
Just because you are desperate for a loan does not mean that you should rush in and take the first loan available to you. This will inevitably lead to poor decisions.
Finding a loan has never been easier and the great news is that much of the hard work is done for you. Websites such as our own allow you to use a loan calculator to work out how much money you can afford to borrow and then provide a simple application form which will submit a single application to a number of the UK’s most trusted bad credit lenders.
With quotes arriving in your e-mail box within a matter of minutes, there is simply no longer a reasonable excuse for not shopping around.
One of the best options for a short term boost is often one of the last options that we think of. Do not be afraid to ask family and friends for a loan if you believe they may be in a position to help.
Pride or an unwillingness to put people on the spot can be very powerful reasons for not choosing this option but you may be surprised at how much family and close friends would like to help if given the chance.
The loan can be as formal or informal as both sides wish and the chances are it will certainly be the cheapest option available to you.
If you would like to weigh up the pros and cons of borrowing from family and friends, the Money Advice Service has drawn up a very helpful guide titled – Should you borrow from family or friends?