Are you struggling with imminent cash crunch owing to bad debts? Do you find it difficult to repay your loans? Are your credit bills already past the available limit? Do you fear non-payment or default of mortgage?
If the answer to any of these questions is in affirmative, you are certainly spearheading a very bad credit situation. Staying with a poor credit score is not good for your credit health. From building assets to living a free lifestyle, to achieving your life goals all require credit.
You need to have a strategic plan to overcome the bad credit health. Indeed, it would be wise to use a professional help in making a debt management plan work for you.
You can consider using an FCA registered broker’s advice to zero on to the best loan option for your credit situation. Let’s discuss three loans that can help you get over the bad credit.
Secured Homeowner Loans
When the burden of debts is too high, you can consider applying for a second charge loan on your residential property. A broker can go a long way in helping you trace a reliable loan for the balance equity you owe on your house.
The best part is there is no restriction on the usage of loan amount. You can use the funds to repay your current liabilities or consolidating all loans into a single loan against property. Also, you can plan a home renovation project and work on appreciating the total worth of your property. Thus, with secured homeowner loans, bad credit can be successfully combated.
The word of caution here is to raise the loan after having a clarity on the repayment. Do not apply without a repayment plan or it will risk the ownership of your home. Another precaution is to stick with the minimum loan amount. Irrespective of what is available against your home equity, you should raise a loan for the amount you compulsively need.
Unsecured Homeowner Loans
In case you do not want to risk your property, you can apply for an unsecured loan or personal loan. The eligibility of loan depends on your creditworthiness and when you have home equity, your creditworthiness is rated higher than tenants. Thus, being a homeowner, you would get a swifter unsecured loan at a better rate.
However, you should not forget to clearly state your credit requirements and ask the broker to search for affordable instalment loans for bad credit only.
Short Term Loans for Bad Credit
As important as it is a search for the required loan amount as is to ensure the loan repayment. If you do not want to shoulder a burden of the long-term loan, you can consider short term loans for bad credit. Short term loans are easier to maintain and repay.
By availing a short-term loan, you can go step by step in your credit improvement plan. With the repayment of every loan, your credit score would improve, and you would become eligible for more loans.
The decision to borrow always depends on your credit requirements and repayment capability. If you want to make an effortless, but the informed decision, a broker can help you understand the pros and cons of each borrowing decision.