Month: November 2020

Can I Borrow with a Poor Credit Score?

If you think you have a poor credit score then you may worry that you will never be able to borrow money. This may not be the case though and there could be some options for you to try. Therefore, it is worth working through this list to see whether you can try any of the suggestions.

Check Your Credit Report

The first step you should consider is checking your credit record to see whether it is correct. Sometimes there are errors on credit reports which mean that you are looked at in a bad light when actually you should not be. If there are errors then get in touch with the relevant companies to ask them to rectify them. Also look at the report and think about what it is that makes it bad or good. Look at whether you have missed repayments, whether you have lots of loans and things like that.

Consider Ways to Improve it

If you can improve your credit report then you will be able to have a better chance of being able to borrow money. You might be able to try different things or perhaps just wait a while until you have paid off some loans. You will need to make sure that you are making all of your loan repayments on time as well. It could be a good idea to also think about whether it might be a wise idea to repay some of the outstanding loans that you have and this will enable you to be able to be more likely to be able to borrow. This because you can prove that you are capable of repaying a loan and also will less loans a lender will more confident that you will have the ability to repay any money that they lend to you.

Contact Standard Lenders

It could be the case that even if your credit report is not in brilliant shape you will still be able to borrow money. Some standard lenders will still lend money to those who are not that good. However, it is possible that they will charge more than the advertised rate because they are taking on more of a risk. It will be wise to contact them and ask about it rather than just applying. This is because if you apply for a loan and get turned down it is noted on your credit report. This puts off other potential lenders, some of whom will just reject you automatically because someone else did, without even looking and assessing things for themselves. So ask first and they will let you know whether they are likely to lend to you and some will even do a through investigation and let you know without doing a traceable credit check. If traditional banks cannot help then see if you have a local credit union as they may lend to those who do not have such a good credit record at a fairly reasonable rate.

Try no Credit Check Loans

If you cannot get anywhere with standard loans, then no credit check loans will be an option that you can take. They will not mind what your credit report looks like with regards to whether they will lend to you. However, it is important to make sure that you are aware that they do sometimes have quite different features and rules compared to standard loans so make sure that you find out all about them first. It could be a good idea to find out about the different types, see how you repay and how much they cost before you decide whether they will be right for you.

Should I try to Improve my Credit Score?

There are some people that might explain to us that it is a good idea to do what we can to try to improve our credit score. This is something that people can get worried about and wonder whether they should do what they can in order to improve their credit score. There are pros and cons of doing this and it is worth thinking about them before you decide whether improving your credit score is a good idea.

Difficulties Knowing What to do

It can be a difficult thing to do because different people have different opinions on what makes a good credit score and so we might be trying to change things which appeal to some people but do not appeal to others. We can make some guesses about what they may or may not want to see but there is no standard way to calculate all of this and so it means that we will have to just hope that anything we are doing will improve things. Common sense will tell you that not borrow too much money and making most repayments and payments on time will be the best thing to do. However, whether doing things like taking out a loan or paying off a loan will help can be guesswork.

Can Benefit Your Situation

If you think that repaying loans or not borrowing will help you credit record and are planning on doing it, then this could be a good help to you personally as well. By reducing your debt you will not have so many fees to pay or so much interest to pay and so you will be better off financially. So, it is not really a risk to try this as it will advantage you anyway. The same as making sure that you make all payments on time as if you do not, you will have to pay charges and if you avoid these then you will be much better off. So, trying some things which could have a positive impact on your credit record, will definitely have a positive impact on you and therefore can be really worthwhile.

Might Impact Your Mental Health

It is worth considering the impact on your mental health as well. Worrying about your credit record and thinking about what you might need to do to improve, could cause stress and worry which it might be better to avoid. However, the opposite might also be true and working repaying debts and making sure that you make repayments on time, could feel really good. You might start to feel better about money because you are managing it better and therefore your stress levels fall. Ut is hard to gauge as we are all different and so you will need to think about what you think will be the best for you. If you are not sure, then you could try to manage your money better to improve your credit record and then review after a month to see what impact you think that it is having on you and whether it is a positive or negative one. Then you can decide whether you feel that it will be better to carry on or better to stop and go back to how you were before.

So, it can be a tricky decision and it is certainly a very individual one. It might be dependent on how much of an impact your credit score is having on your life. If it is not really making a big difference to you, then it could be a good idea to just ignore it, especially if you think that changing what you are doing will be stressful. However, if it is restricting you, then it might be wise to think about what you can do to improve things.

Should I Stick with a Bank I Know?

It can often be difficult knowing whether it is better to stick with a bank that you know or change to another one. There are reasons for and against and it can be worth thinking about them all and then you will be able to make your mind up as to which will be best for you in your specific situation.

Advantages

  • Know what to expect – with a bank that you know, even if you have not used them before, you will know more about what to expect from them. It could be that you have seen adverts, often walked past the branch, know people that bank with them or even have used them yourself. This is reassuring to some extent because you feel that as you know a bit about them you will not be totally dealing with a company that you know nothing about at all.
  • Well known name – some people like the idea of banking with a place with a well-known name. They feel that if it is a brand that a lot of people use, then they are more likely to like it as well. It can be reassuring to know that they are well-known and that could make you feel that they will treat you well as a customer because they will want to keep their good reputation. You may also just feel more comfortable with using them because you know that they have been around for quite a while as well. Normally, it takes a while to build up a reputation and become well-known and so the fact that you know them could make you feel better.

Disadvantages

  • Might be better options – by only using banks that you know; you could find that you will end up limited in your choice. There are likely to be lot of banks that you do not know and they could be much better with regards to the items that they are offering. Also, just because you do not know them, does not mean that they are not well-known and not popular, just that there is not a branch on your high street or you have not seen them advertising. It does not means that there is anything wrong with them.
  • Unknown banks might work harder– if a bank is not well-known then it will need to make sure that it provides a good service. This is because it does not have the benefit of a brand name to get customers from so will have to rely on recommendations and reviews. This means that they are likely to actually be better than the more well-known banks. You might also find that they will be cheaper. More well-known banks know that people will pay more for their brand and so can get away with charging more but less well-known ones will have to be really competitive with prices as well as other things in order to succeed.

Hopefully, you can see that there are pros and cons to sticking with a bank that you know already. It can be a good idea to think about whether this will be a good idea or not. It is wise to take it into consideration but also carefully compare other features of the banks so that you will know that you will end up with the bank that is likely to offer you the best value for money. You could end up paying a lot less for a loan or getting better savings interest, having better customer service etc if you do go with a bank you do not know and so it could be something well worth considering.

How Much Should I Borrow with Payday Loan?

When you take out any type of loan, it is important to think hard about how much you are going to borrow. This is because you will be charged interest on everything that you do borrow and you will therefore need to make sure that you calculate the amount very carefully and try not to borrow more than you need. You will also find that there could be some restrictions in how much you will be allowed as well.

How Much do I Need?

It is important to carefully calculate how much you need to borrow. To start with think about what you need the money for a how much that costs. Often, we stop here and borrow that much plus a bit extra for a few treats, but we need to think harder first. To start with, look and see whether you have any savings or any spare money in your bank account that you can use to put towards the cost of the item that you are buying as this will allow you to borrow less money. You should also not get a bit extra for a treat. It is so temping to do this, especially if you have not been able to treat yourself for a long time. It is important to remember that you have to pay interest on everything that you borrow and so a treat can be really expensive if you buy it this way. If you borrow extra it will also increase the risk that you will not be able to repay the loan in full and that will mean that you will have extra fees and charges to pay.

How Much Can I Have?

It is also important to find out how much you can borrow form the lender. Different lenders will vary in how much you can have but generally a payday lender will let you have between £100 and £1,000. This may mean that you will not be able to borrow enough for your needs. However, only borrowing a smaller amount can be easier as you will not have so much to repay. You may find though, that if you have not used a lender before, that they will only lend you a few hundred pounds. This is because they do not look at your credit report to determine whether they feel that you can be trusted to repay them. They will lend to those that others will not and this means that they will want to build up some trust with them first. Therefore, they may only lend a small amount and once that is repaid might then be happy to lend more money. So, if you need more than a few hundred pounds, then you might have to ask the different lenders whether they will be willing to let you have that much or go to a lender that you have used before.

It is always wise to borrow the minimum amount that you can. This is because it will keep the cost of your loan down and it will make it easier to repay as there will be less money to find. This is true of all loans, not just payday loans because they will all charge for every bit of money that you borrow from them. You will also be restricted on how much your lender will be willing to let you borrow, so even if you have decided on a certain amount, you may find that you will not be able to borrow that much money. With a payday loan, the amounts do tend to be smaller than with many other lenders.

When to use Quick Loans?

It is not always that easy to know when we should be using different types of loans. It is therefore a really good idea to make sure that we have a good understanding of the different loans and how they work and this will help us to be able to then be able to make the right choice when we need to borrow some money as we will be able to match our needs up with the right loan.

What is a Quick Loan?

A quick loan is a payday loan. This means that it is a short term loan, which will have to be repaid in full when you next get paid. The idea is that you will borrow a small amount of money to pay for an emergency that will keep you going until you are paid. This means that you can generally only borrow between £100 and £1,000. The loans are arranged quickly, so that the money is available for emergencies and with some lenders you will have money within a few hours of applying, although that can vary a lot. You will need to repay everything that you have borrowed on your next payday and this means that you will need to find a lump sum of money which will cover what you borrowed plus the interest and fees charged on the loan. The loans tend to made available to most people including those that do not have a good credit rating. This means that if you get turned down by other lenders, these loans could still be available for you to use.

When Should they be Used?

Quick loans are expensive because the lenders will be taking on a risk lending to someone that has not got a good credit record. This means that it is important to think about the cost of the loan and whether you think that it will give you good value for money. If you have savings then it will be cheaper to use those instead and if you can wait before needing the money then it is a good idea to save up or wait until you next get paid. However, if you need the money urgently and you are happy to pay for the loan then this is your first step towards applying.

However, you should also consider the fact that you will need to repay the loan. It is really important to make sure that you check to see if you will have enough money available to pay it. Do not just think about the fact that you will be paid and if your pay is more than the amount you will need to repay then you will be okay but carefully calculate it. Firstly, you will need to check that you are correct in the amount you need to repay. Remember, this will not just be the amount that you have borrowed, but it will also include interest and fees and so you need to be sure that you know the full amount. The lender will be able to tell you this. Then you need to think about what other essentials you will need to pay for and whether there will be enough money to cover these and the repayment. If not, think about whether there is anything that you can do to increase how much you are earning and reduce how much you are spending so that you can manage. Only once you are confident that the loan is the right idea for you and that you will be able to repay it will you be able to confidently take out the loan.