Financial discipline is a key to good credit score. However there could be more reasons for the reverse of it. Broken finances could be result of several wrong decisions besides non repayment or delayed payment of instalments.
When much of the damage is already done to your credit report, you could consider long term loans to restore your credit worth. The path to financial recovery however would see a lot of roadblocks in the way and you would need a lot of patience to cross the path.
Whether you have lost your job in the middle of the career, or your short term business has failed to make a mark in the market, you would need additional funds to stay afloat. A lot of unsecured credit solutions such as unemployed loans or personal loans are available in the UK to help those living under pressure of bad credits.
You would need to build a positive outlook and you may soon help your credit score. However when too much of the damage has already been made, it is important that you plan your next moves carefully. You can use services of a loan broker and find out the best credit solution for your situation.
Unemployed Loans
Unemployment brings in a lot of mental and financial pressure. If you already have a couple of instalment loans such as home loan, car loan, personal loan or education loan, the stress of meeting financial obligations every month is bound to haunt you. A short term unemployed loan could be a way to relieve the financial stress for some time, but a long term loan would serve as a fool proof debt management strategy.
In the absence of a job, an unemployed loan would cost you a much higher APR. While in case you have a home to use as security for a long term loan you can save enough on the interest rate.
Debt consolidation
You may consider debt consolidation of multiple loans into a long term loan. This would give you a decent playing field to improve your inflows. Besides it would become easier to manage a single loan rather than other smaller loans.
No guarantor long term loans
When your finances crash, so does your social bearing. You would become your own guarantor and may even need to apply for a long term loans no guarantor. Although conventional sources would not be willing to allocate no guarantor loan with bad score, several Fintech companies would certainly help you. A lot of brokers work in the UK to serve the bad credit borrowers raise funds.
A broker can help you find the most affordable loans without a guarantor.
While you opt for long term loans it is important that you care for following points
1. Being a long term loan, the debt would stay with you for longer period of time. You would need to maintain a thorough discipline all these years. You would require to save every month and repay successfully. The repayment of loan would build a good history.
2. Before signing the deal, read the loan agreement carefully. Look for prepayment option too.
3. Negotiate on loan interest as much as possible.
Seal the deal only when you think you could meet the monthly obligation.