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Improve Your Credit Score with Guaranteed Loans
3 months ago

Are you worried for getting a loan because of having bad credit history? Are you also the one among the thousands who think that hiring a broker is must to get a flexible termed bad credit loan?  The term ‘bad credit guaranteed loans’ gives the perfect answers to all the questions you might have before approaching a direct lender. The term itself removes all the misconceptions and hitch to solidify your confidence of getting ‘online instant decision financial help’ from a private lending agency. Here, I am posing private lending agencies as the preferred choice because the majority of bad credit applications are denied by the Govt. institutions while the direct lending stores welcome bad credit people. No doubt, the credit score is a vital component of borrower’s financial credibility but not a barrier that can't be crushed. Why don’t you do it with bad credit guaranteed loan?

 

Why Did You Get Bad Credit Score?

 

There are several direct and in-direct reasons that create bad credit history keeping you unaware of such development; most of time, the people neglect the importance of credit score until they need borrowing. Following are the eight prime reasons that may be affecting your credit score adversely:

  1. 35% of credit history contains payment history. If you are paying credit card’s bills consistently late, you are pulling down credit score.
  2. Ignoring the monthly credit card bills is more harming than to paying late. Each missing installment draws a financial penalty besides lowering the credit score. 
  3.  Each ‘charged off’ mark lowers the credit history. Avoid "written off" in any condition as the end of repaying responsibility.
  4. Avoid involvement of 3rd party collectors up to your best. Pay at least the minimum permissible amount. If the leading agency hires 3rd party debt collectors for recovering the dues, your credit ranking suffers heavily.
  5. The loan default is like having ‘charge-offs’.  A loan default highlights the failure in repaying back the dues.
  6. Bankruptcy devastates your credit score. It keeps reflecting for six years and even for more. The situation can be managed by getting ‘consumer credit counseling service’.
  7. In case, you use 100% credit limit, it harms the credit score. Never use the maximum permissible limit of any credit card.
  8. Frequent debt inquiries also reflect over credit history contributing 10% of credit score. Multiple loan applications in a short period cause a drop in credit score; therefore, apply for ‘bad credit guaranteed loans’ only in unavoidable circumstances. 

You Are Not The Only One Asking For Bad Credit Loan

 

A survey report shared by ‘Compare the Market’ in 2017 states that 25% UK households are struggling to manage the monthly regular expenses. The report also states that 62% households are worried for the existing debt. Just think yourself - would you become a guarantor for a bad credit borrower? Same is the case with you. The average UK credit score is 760; while the best possibility is 999. The 'prime' credit ranking is about 680. The people with 'prime credit ranking’ get the guaranteed loan at lower APR. According to John McDonnell - Shadow chancellor, “The unsecured borrowing in the UK is expected to reach £19,000 / household by the end of 2019. The UK seems being trapped in unsecured personal loan crisis”. Each resident holds almost £30,455 as the pending debt. The data collected from different sources confirms that the majority of UK households rely on borrowing.

 

Use Guaranteed Loans To Avoid Credit Score Fall:

Personal loan can be used to consolidate high-interest debts. Low monthly installment accelerates the credit card debt pay off. Personal guaranteed loan can be used to meet out the medical emergency experts when you are unable to pay cash up front. To improve credit score, reduce the credit card utilization below 30 % by using the loan amount. The guaranteed instant decision loan by a genuine direct lender is a better option than using the maximum credit card limit. Make sure to pay off all the EMI/credit card dues by fresh loan amount. When you pay the debt on the time, it tempts you to borrow more but don’t commit this mistake otherwise you will see a dip in your credit record. Applying at multiple lending agencies in one go is a very common trend; be a smart borrower and don’t follow the trend because each loan request affects the credit score.

Takeaway:

The guaranteed loans were conceptualized by the direct lending agencies to help the borrowers meet out emergency expenses or the unexpected living expenses. These loans are made available without any limitation on the type of usage; and, using the amount to improve the credit score for future borrowing is one of the smart usages.

Posted in:Loans
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