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| © 2012 Copyright Poor Credit Loans 4 You | Innovation Centre. PO30 SWB | ||
Click here for how to improve your Poor Credit History
At Poor Credit Loans 4 You, we realise that applying for a loan or certain debt circumstances are not always straightforward and some people find it embarrassing to ask questions.
Below we have listed different subjects concerning credit in general, including CCJ's & defaults loans and debt which may help you understand your situation further:
APR
What is an APR and what will mine be?
APR (Annual Percentage Rate) is the percent of interest that is charged against your loan every year. The typical APR we can source is 21.8%.
Monthly Repayments
What is a monthly repayment?
Once a loan is sourced and paid out, it is more than likely you will be paying back the loan in monthly instalments. These repayments will be provided before the loan is completed and will normally be the same amount each month.
Loan Agreement
What is a loan agreement?
This is the paperwork that shows the agreement between you and the lender. It will detail the APR, repayment period, loan amount and the terms of the loan.
It’s important that you stay within the agreement to ensure that you do not encounter any further poor credit problems.
Poor Credit Loan
What is a Poor Credit Loan?
A poor credit loan is generally required when you are refused a loan by your bank or building society because of poor credit. If you have experienced trouble keeping up repayments on previous loans or credit cards, then you would have affected your credit rating, making you a higher risk to lenders.
In recent years the number of poor credit loan providers has decreased as companies become more concerned about poor credit borrowers. However, those with specialist knowledge in the sector are still well equipped to source poor credit loans.
How Can I Be Accepted For a poor credit loan?
It’s important to choose the right company who can make the process extremely simple. Using Poor CreditLoans 4 You takes all the hassle away from finding a poor credit loan. Our highly trained and committed team help you breeze through every step of our simple process, ensuring that any natural anxiety is kept to the bare minimum.
What is the Risk?
Poor credit loan borrowers are usually considered high-risk, so the lender is regarded as the one taking more of a gamble by providing the loan. Interest rates are usually higher than normal high street loans; therefore the repayments are also higher.
It’s worth considering the poor credit loan as not only a means of financing your particular requirement at the time, but also as a way to repair your credit rating.
If you keep up repayments on time then it will show favorably on your credit score, but as soon as you start missing repayments your rating will become worse than before.
Debt Consolidation Loan
What is a Debt Consolidation Loan?
A debt consolidation loan is used to pay of all your existing debts so you only have one monthly repayment instead of multiples to different companies.
Combining all your debts enables you to manage your debt better, keeping a more simple record of your current financial position and can help by lowering your monthly repayments.
Would I Benefit From a Debt Consolidation Loan?
Debt consolidation loans are most useful if you are finding it hard to manage your debts. Having lower monthly repayments will mean that you have additional money each month and you can also choose to have payment protection on your loan. This will cover you in case of accident, sickness or unemployment.
Student Consolidation Loans
Student consolidation loans can be very beneficial to graduates with multiple debts. It enables the student to manage their finances easier once they have graduated and will help them towards a more positive credit future.
What Should I Look Out For?
It’s important to make sure the debt consolidation loan you take out has a lower monthly repayment than your combined current debts. The interest may also be higher, so it’s worth considering whether you will end up paying more or less than you currently are.
Are There Risks With a Debt Consolidation Loan?
It’s important to remember that your debt has not been reduced or been completely paid off. It’s easy to think that because you have consolidated the debt your problems have been solved, but you still owe at least the same amount as you did before.
For some people the financial problems they face could be through no fault of their own due to illness or redundancy. But those whose spending in the past caused them poor credit problems in the first place, must make a concerted effort to stay within their new budget.
Can Anyone Apply For a Debt Consolidation Loan?
If you have a regular income and have confidence in your ability to keep up with repayments on a debt consolidation loan, then Poor CreditLoans 4 You could already be helping you today.
How Do I Apply For a Debt Consolidation Loan?
Contact our highly trained and committed team who will help you breeze through every step of our simple process.
Poor Credit Unsecured Loans
What Is A Poor Credit Unsecured Loan?
A poor credit unsecured loan (also known as a poor credit personal loan) is safer to a borrower than a poor credit secured loan. With a poor credit unsecured loan you do not need to secure a significant asset against the loan, with the risk of losing it if you do not keep up repayments. The same applies to applying for unsecured loans for people with poor credit.
Poor Credit Tenant loans
What is a poor credit tenant loan?
A tenant loan or online tenant loan is another commonly used way of describing an unsecured loan. Tenant loans are for people who live in rented accommodation. A tenant loan is suitable for council tenants, private tenants, housing association tenants or living with family.
See also: Poor Credit Unsecured Loans
Poor Credit Car Loans
Buying a car is one of the biggest decisions - and can be the most expensive purchase - of a person’s life. Prices vary significantly between brand new and second-hand cars, plus it’s worth considering extra costs such as MOT, Tax and Insurance.
You should also ensure you get any car you are interested in purchasing fully checked or make sure it comes with a warrantee. If the car breaks down you will still have to keep up repayments on the poor credit car loan you took out.
What Is a Car Loan?
Unlike a hire purchase agreement where the loan company technically still owns the car until the loan is paid off, a car loan enables you to own the car outright and simply pay back the loan over time.
Poor CreditLoans 4 You can offer a dedicated car loan service and endeavour to source not just the best poor credit car loan for your circumstances, but also to have it processed and paid out to you with minimal hassle and in the quickest time humanly possible.
Who Is Eligible For a Car Loan?
Unlike many companies we are interested in your current ability to repay your loan, not just how you faired in the past. So we have the ability to help those who have experienced poor credit difficulties such as mortgage or rent arrears, CCJ’s and defaults. We can also help those who are self-employed or who find it difficult to prove their income.
Do Car Loan Companies Sell Cars?
Unlike most hire purchase companies, Poor CreditLoans 4 You let you choose the car you want to buy and don’t just restrict it to ones that we want you to.
Business Loans
What is a Business Loan?
A business loan can be used to help start an exciting, new enterprise or kick-start your current business, it can even be used to gain more long-term security.
It doesn’t matter whether the business is a limited company or a sole trader, as long as you believe you can keep up your repayments then Poor CreditLoans 4 You can help today.
Despite many attempts by the government to force banks and building societies to lend more to small and medium businesses, people are still finding it hard as the banks are being overly cautious.
Credit Files
What is a Credit File?
A credit file can be described as an ongoing and evolving record of a person’s credit history. It provides information supplied by your creditors to a credit referencing agency.
You can obtain a copy of what the agencies hold on you for a statutory fee of £2. The three main agencies are Experian, Equifax and Callcredit.
How does a credit file affect me getting credit?
If you miss payments, go over your agreed amount or do not keep up with any other term stated in your credit agreement then your creditor will inform the credit reference agencies.
This will in turn be displayed on your personal credit file and is a signal to other lenders that you have recently not kept within your agreement.
CCJ’s (County Court Judgements)
What is a CCJ (County Court Judgement)?
A CCJ (County Court Judgement) can be issued against your name if you are unable to meet repayments to a creditor and the creditor decides their only option in having their money repaid is by taking you to court.
The court’s main function is to decide whether you owe any money, and if so, how you should repay it. If you pay the outstanding amount then you can avoid the judgement being made against you.
How Will a CCJ Affect Me?
A CCJ can make it difficult, if not impossible to obtain credit directly from your bank or building society, but it does not mean there are not other options for you.
Poor Credit Loans 4 You has a proud reputation for helping people in exactly these circumstances.
Can I get a CCJ Removed From My Credit File?
There is a system which allows you to have the CCJ legally removed or “set aside” from the court records and those of credit agencies. You should contact the courts for more details and the appropriate form if you fall within the rules allowing the CCJ to be removed or for the CCJ to be "set aside"
Defaults
What is a default?
A default is simply a record placed on your file by a creditor stating that you have not met the obligations of your credit agreement in some way, usually by missing payments.
Under the terms of your credit agreement you will probably have agreed that the lender has the right to inform the credit agencies of any default.
What Are The Implications of a Default?
A default on your credit file acts as a warning to those you might apply to for credit. Some companies do not offer loans for people with poor credit like defaults, but a poor credit loan specialist like Poor Credit Loans 4 You has the experience and knowledge to help.
Can I Get a Default Removed From My Credit File?
Unlike the procedures for the removal of CCJ’s, you cannot have a default notice removed from your credit file without the consent of the relevant creditor/lending institution.
There are certain circumstances where a lender will be unwilling to provide consent for the default to be removed, which will mean the default will remain on your file for up to six years.
A Handy Hint re Defaults Removal - check your credit files, you will see the default on the bottom line of the entry together with 000s' - each month your credit file is updated by the lender, provided that the account is still open ensure you set up a direct debit and make the payment each month on time. Then as the lender updates your file each month the default moves along the line of 00000000s' and within 12 months will disappear from your files. If your account is closed sorry you have to wait 6 years for this to be removed, so worthwhile keeping the account open and paying it off monthly if you can. The aim is to have perfect rows of 0000000000000000s' this means payment made on time each month - PERFECT
Bankruptcy
What is Bankruptcy?
Bankruptcy is an option for an individual to clear all or part of their debts if they cannot pay them when they are due.
A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order (there is the possibility that in some cases the bankruptcy discharge period will be less than one year).
The bankruptcy proceedings:-
1. Free you from overwhelming debts so you can make a fresh start, subject to some restrictions
2. Make sure your assets are shared out fairly among your creditors.
Who Can Go Bankrupt?
Anyone can go bankrupt, including individual people in a partnership.
What Are the Advantages of Bankruptcy?
For the person involved, bankruptcy can provide great peace of mind by releasing someone from all, or a very large part of their debts with a possible automatic discharge after one year.
For the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out so they can identify any means of obtaining some of their money back.
What Are the Risks of Going Bankrupt?
Bankruptcy carries a bad stigma and is publicly advertised. It should only ever be considered as a last resort as the results can cause lasting effects.
Although you can be discharged from bankruptcy after 12 months, the fact you have been made bankrupt shows on your credit files for six years, making it near impossible to obtain a mortgage. Extremely hard to find finance or credit of any description.
Bankruptcy should never be entered into as an 'easy option' it is sold by many as an 'easy option' but the long term effects are hardly ever mentioned and six years is 'Long Term'
Please note that if your are ever faced with the prospect of bankruptcy you should look at alternative debt solutions as soon as possible.
There are many various debt solutions available these days we advise you to seek unbias advise ASAP if you have debt problems.
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Call our team now: 0800 215 5860
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| © 2012 Copyright Poor Credit Loans 4 You | Innovation Centre. PO30 SWB | ||