Oct 10, 2019

Credit Score

As you are looking to build your credit and qualify for home and car loans, nothing is more important than your credit score. Your credit score is something that you build as you have lines of credit. Making on time payments and paying off loans in full is key. You also want to be sure that your balances are low on your credit cards if you want a high credit score. Your credit score often takes time to build, but it is important and it is something that you should take seriously. You might honk that it is impossible to get a loan with a low credit score, but this is not always the case.

Here is everything that you need to know about loans designed for low credit scores:

Interest Rates

If you have a low credit score, one thing that you need to know right away is that your interest rate will most likely be higher. This means that you are only going to qualify for loans that come attached to higher interest rates. When you are paying more in interest, the total amount of the loan that you are relating is higher. You have to factor in the amount of the loan and the added interest to get the loan total. When you want access to the lowest interest rates, you need to be sure that you have the highest credit score possible.

Repayment

Many of the traditional loans that you secure with a credit score are for large sums. This often results in you paying back the loan over long periods of time. This is not the case when it does come to the more short term loans that you obtain when you have poor credit. With these loans, you repay them back fast and only pay a small amount of interest because the life of the loan 

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Representative example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% p.a. (variable). Representative 305.9% APR. A short term high cost loan should not be used as a long term solution. We are a broker not a lender. We don't charge fees. We don't sell your personal information.

Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk

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