Loan Low Credit

Having a low credit rating does not have the same stigma attached to it as it once did. So what has changed over the years? The simple answer is the fact that so many of us today have experienced not only having some form of bad credit but also of the resulting implications when applying for finance and credit.

 

Having a low credit rating can also be down to other factors - For example, did you know that a prospective lender is likely to blacklist you if you do not have a landline telephone? This is due to a perceived level of risk in the event of a borrower defaulting on a loan, they might be harder to get hold off with just a mobile telephone.

 

Financial difficulties are often the unfortunate result of factors that many will regard as being out of one's control - such as a relationship breakdown, divorce, accident, sickness and unemployment. In some cases, the danger of missing mortgage and loan repayments, and other debts and bills can be reduced by arranging a suitable insurance policy to cover the outgoings however this will not always happen for whatever reason.

 

An individual who has a low credit rating will not necessarily have experienced credit difficulties in the past. In fact, on many occasions, individuals will fail a credit score due to having no credit recorded on file - a catch 22 situation perhaps?

 

In the majority of cases however, having a low credit rating comes in many different forms – missed or late mortgage payments, mortgage arrears, missed loan payments, defaults, County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs) and previous bankruptcies.

 

Most lenders will work a credit scoring system for those borrowers applying for credit in order to assess how ‘creditworthy’ the individual is. Every system will differ although the basis of their methods will resemble one another. In order to make a decision, the lender may first access your personal credit information which is made available from the credit reference agencies, for example Equifax & Experian. - They may also look at whether you pay your car tax on time!

Having a low credit score does certainly NOT cut you out of the loop when applying for credit.

 

Provided that you are a UK homeowner with sufficient equity in your property, then there is a very strong chance that you will be accepted – subject to affordability.

 

Resolving debt issues by way of consolidating them into one single monthly repayment can offer a huge relief to many borrowers. Achieving a lower rate of interest on your borrowings can only be regarded as a positive thing.

 

If you are looking to borrow between £5,000 and £100,000 over a term of between 5 and 30 years then contact us today. We will do the shopping around so you don’t have to!