Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/vhosts/oxfordfoodbank.co.uk/httpdocs/wp-includes/kses.php on line 893

Can You Still Get a Loan with Bad Credit?

If you have a spotty credit history that’s covered in problems thanks to late and missed payments, it’s worth remembering that you’re not alone. In fact, a lot of people throughout the world struggle to keep on top of their finances in a way that allows them to get through life with a pristine credit rating. That’s why so many people constantly struggle to get their hands on the finance that they need when they ask for a loan or a mortgage.

Even if you’re the kind of person who is always careful with the way he or she spends money, there’s a chance that something unexpected could jump out of the woodwork and surprise you with unwanted costs. In these cases, your hard-earned savings can be instantly depleted, and you could struggle to make the repayments that you owe. If you do have bad credit, the chances are that you might struggle to get assistance from a traditional bank or building society, but that doesn’t mean that there aren’t still options available to you.

Defining Bad Credit Loans

If you have bad credit, then you won’t be able to apply for the loans with the best interest and terms, instead, you’ll need to look into options that have been specifically designed for people who are considered to be more of a risk. Unfortuantely, this usually means that you’ll need to pay a lot more than other lenders might expect in terms of APR and interest rates. However, if you desperately need a loan, then this could be your only option.

Bad credit loans are loans that are designed for people who the bank or building society considers to be high-risk. Usually, these loans only have very low limits, and they will also have very specific repayment plans and high interest rates. That could mean that you end up struggling to manage your money a lot more with a bad credit loan.

Because of this, it’s important to remember that you should feel confident about your ability to pay back a loan before you try to take out any extra money. Missing repayments on a bad credit loan will not help your situation, and you could end up getting yourself into a lot of debt that’s very difficult to get out of. Similarly, if you decide to improve your chances of getting a loan that has been secured against your property, such as a loan that is secured on your car or home – you risk losing those assets if you don’t make payments.

Of course, having a loan and paying it back on time can help you to start making good changes to your credit history.

How to Repair Bad Credit

The first thing to understand about credit is that there’s a big difference between bad credit and no credit. No credit can also make it difficult for you to get finance from traditional lenders, who can’t determine whether or not you’d be a risk, but unlike bad credit, it typically doesn’t come with missed payments and CCJs that prove you are a big risk to your credit lender.

Both people with bad credit and no credit can struggle to get a good deal on their loan, but as we have mentioned above there are options out there. Ideally, if you can avoid getting a loan for a while and focus on building up your financial standing, then you might find that the next time you apply for finance you’re actually in a much stronger position. After all, there are plenty of ways that people with bad or no credit to start improving their credit score. For instance, it’s recommended to make sure that your name is on the electoral roll. You need to be on this list if you want to start creating a good credit background for yourself.

Additionally, when you are applying for credit it’s important to make sure that you spread out your requests for money. Every time you ask a lender for money, you place a mark on your file that could mean you’re more likely to be rejected by other lenders. After all, if a company looks at your credit history and sees that you’ve been constantly rejected by other companies for the same amount of money, they’re probably not going to feel comfortable about the idea of giving you finance.

One of the best ways you can go about fixing your history and improving your credit history is to avoid covering your report in smudges, and be careful with your repayments when you have a chance to access finance. Whether it’s through a credit card or a loan, make sure that you make all of the payments that you owe to your bank or building society on time, and check the regulations and rules that you’re agreeing to before signing any paperwork.

How to Decide if you Really Need a Loan

Sometimes, when we’re worried we can’t make important payments or afford the price of something that we perceive to be crucial, we assume that the only option is to visit our local bank or building society and ask for a loan. However, before you start signing up for credit cards and getting yourself into debt, it’s important to consider your financial situation carefully and determine whether you actually need a loan.

It sounds strange, but some people jump into getting a loan without any deep thought about whether they can afford to repay the money that they borrow, or whether there might be opportunities out there that are less risky. Unfortunately, as economic uncertainties continue to stack up, it’s crucial to think carefully about your needs and determine whether a loan is really the best decision for you. Here, we’re going to look at some of the factors that you should think about before you approach your bank and ask for finance.

How Much Do You Need the Money?

Often, people considering taking out loans spend so much time asking themselves how much they need to borrow, that they forget to question whether they really need to borrow money at all. While some purchases are unavoidable, others can be classed as a luxury that you really don’t need to spend on. It’s important to ask yourselves whether you could safely get by in your life without spending the money that you’re thinking about borrowing. Alternatively, if there’s something that you really need, you might be able to find a way to get it using a different strategy.

For instance, some people find that they can sell old things that they no-longer want to purchase a new item or fund an investment. Other people find that people around them are happy to lend them money for short periods of time – at least until payday comes around. It’s very important to sit down and examine your circumstances in depth, so you can determine whether you’re making an essential purchase or not.

Most of the time, you’ll find that in a while, you’d be able to afford the item that you want anyway, simply by saving back the money that you would have paid on a loan. Although it can be difficult to be patient, if you can do it this way, this is almost always a better option as it reduces the risk to you, and limits the amount you will have to pay on interest too.

If you really need to make an emergency purchase, look around you at the other options that are available beyond getting a loan. For instance, perhaps you could dip into your overdraft, or ask people in your family to let you borrow the money. If you look at your finances and know that you won’t be able to save money for a purchase, then the chances are that you won’t really be able to afford a loan anyway, so it’s probably best to stop and rethink your steps.

If You Do Decide to Get a Loan

After you have taken the time to think carefully about your circumstances and the options available to you, you might find that you still need a loan or credit card to help you buy or pay for whatever you need. If this is the case, then remember that you’re going to need to think carefully about what kind of loan you want to get, and how you are going to repay the money that you owe.

Look into your finances and figure out how much you can reasonably afford to repay each month. This should involve looking at your monthly income and taking off any money that you absolutely need to keep to one side to pay for bills, food, and other essentials. Once that’s out of the way you’ll be able to see how much money is left to pay for your loan. At that stage you’ll be able to figure out whether you’re going to be able to afford your loan, or whether you need to look for new terms or repayment strategies.

Once you’ve considered your finances, think about what kind of loan or credit card you’re going to need for your specific circumstances. If you choose the wrong credit option then you could end up paying fart more in charges and interests than you really need to. Speak to an expert to avoid problems if you can, and make sure that you examine crucial factors like the APR and number of fees you might need to pay if you want to change the terms of your loan, or repay the money that you owe ahead of schedule. This information should give you all of the guidance you need to take a positive step into your loan.

Is Using an Overdraft Better than Getting a Loan?

Many of us find ourselves in need of a little extra money sometimes. We can’t always afford to pay for the surprises that life throws our way – whether we need to pay for a new car so that we can go to a new job that’s out of town, or we need to fix something that’s gone wrong within our home. There are unexpected expenses almost everywhere we turn in life, and many of us simply don’t have the money sitting around in a bank account to help us out when we need it most.

Because of this, a lot of people turn to loans as a solution for their financial needs. Of course, loans aren’t the only way you can get your hands on the money that you need. Another opportunity could present itself in the form of your bank’s overdraft facility. Many people have some manner of overdraft included with their bank account as standard, and it can be a simpler way to borrow money depending on the amount of interest you must pay.

Using an Overdraft Facility instead of a Loan

So long as your overdraft facility use has been approved by your bank, it can be a great way to access some extra cash when you need to pay for something suddenly or as part of an emergency. Though overdraft solutions are best used for only a very short amount of time, they can allow you to borrow the money that you need from your current account without incurring huge charges or worrying about the process of applying for a loan.

Some people will be given an overdraft facility as an automatic aspect of their bank account, whereas other peoples will need to request that the facility be supplied to them. The important thing to keep in mind is that you need your overdraft to be authorized, as this will allow for a limit on how much you can borrow to be set by the bank itself. Though some banks will ask you to pay for a fee on your overdraft facility, others will give you a chance to access 0% interest for a short amount of time, depending on how much you borrow.

Remember, usually overdraft facilities that don’t have any interest payments will only let you borrow small amounts of cash, so if you’re in need of a big purchase and have no other cash to supplement the spend, you might need to consider other services. Additionally, it’s important to ensure that you stick to the limit that is provided to you when you use an overdraft account, as charges can be steep if you go over the amount that you are permitted to borrow.

Using an Unsecured Loan

If you find that you need quite a lot of money urgently, but not so much that you will need to mitigate the risk of your borrowing behavior by using a secured loan, you could consider opting for a personal or unsecured loan instead. A lot of people use unsecured loans to help them get their hands on money fast when they need to make big purchases for their home or their car. These financial solutions will let you borrow a lot more than a standard overdraft facility.

Another benefit of an unsecured loan is that you may be able to access one that comes with fixed interest rates. This simply means that you’ll know exactly how much you’re going to need to pay out each month, and how long you’re going to have to make your repayments for in order to get rid of your debt. This can be very useful as it allows you to manage your debt without getting caught up in accidental missed payments. With flexible loan terms, you’re left to make payments by your own devices, which can be tough to manage if you’re not great at dealing with money. On the other hand, with secured loans you can simply set up a direct debit that gets the money sent to the lending company every month at the right time so that you never miss a repayment. This way you can reduce your chances of having to pay steep penalties or face repercussions.

Crucially, with an unsecured loan, you’re not putting a house or car up against your loan that the bank can repossess if you don’t make payments on time, but that doesn’t mean that it isn’t important to be cautious with the way that you may payments. Unsecured loans can come with plenty of fees, and you may even have to pay extra if you try to pay too much of your loan at once time. Make sure that you check the terms of your loan before you sign any agreements so you know what you’re getting into.