Your credit score is summary of your financial health.
While generally, your credit score plunges due to non-payment of loans or high debt to income ratio; sometimes your score could be low due to no fault of yours. Many times, ignorance plays foul. For instance, multiple loan queries in a short span of time or rolling of credit card bills could be two major reasons for a weak score.
As soon as you realise the mistake, it is advisable to act in the right direction. One of the first steps to improve your credit situation is to pull out your credit report. While you can always apply for additional loans for people with bad credit via a loan broker and meet your cash shortages successfully, it is also important to improve your credit situation at the same time.
To assess your credit health you must make some of all debts and all income sources and figure out if you have enough surplus left after basic expenses every month. If you are spending more than 50 percent of your monthly income on repaying loans, it is surely a red flag. You must discover ways to reduce the debt burden. You can consider closing smaller expensive loans first.
Another roadblock for your poor credit health could be cash crunch owing to high debt burden every month. When do you not have enough funds to repay your loans how could you afford the additional loan to ease the cash flow? Herein, you would need professional loan advice from a loan adviser.
A loan broker can help you learn about the types of credit products you can put to use. With the advent of FinTech in the UK, you have ample choice of loans to pick from. If you are looking for a quick alternative you can opt for payday loans; for small influx for easing cash flow, you can apply for short-term loans, and for a higher amount you can indeed avail 12-month loans for bad credit or more.
Which loan is perfect for bad credit?
While every borrower seeks a perfect match at the cheapest rate, it would be false to say that certain type of deal would act for all. We all have different profiles and thus we need different debt solutions. The tailored loans are perfect.
A bad profile basically requires correction. Herein professional loan advice of an experienced lender holds utmost importance for the borrower. You must choose a specialised broker and share your credit needs candidly. Based on your profile, he would share the available loans with you.
Always compare loans on the basis of affordability. The most affordable loan is the perfect loan for you. For, you must also ensure successful repayment of a loan.
It is you who can write and rewrite your story. Your willpower to improve credit would play a crucial role.