Sunday, April 18, 2021

Optimize Loans & Credit Card Use for Stress-Free Life

Different types of cheap installment loans, being provided by direct lending agencies, are being used widely for different objectives by the good credit score holders as well as by the bad credit score holders all across the UK. Bad credit score, a serious problem in the UK, is drawing concern of banking and other financial institutions. Britain’s household average debt mountain has touched the new height; according to a report appeared in ‘The Guardian’ on 7th Jan 2019, each UK home owns an average of £15,385. Wage stagnation is held responsible for the increased borrowing but irresponsible behavior towards debt repayment and lack of knowledge about the credit score and its importance are equally good contributors for rising debt level.

Growing Dependency upon Easily Available Credit Card Loan:  

David Steele of The Money Charity says, “British with low income are turning to easily available credit cards being impressed with marketing tricks”.

Britain owes about £72.5bn only on credit cards as the British households largely depend on debts despite knowing the probable consequences of a weak and unstable economy. A report on ‘Independent’ states that £400m was added to credit card balances in November 2018 alone. Each household now has about £2,688 unpaid average balance on credit cards. Credit card owners are paying off their dues at a high-interest rate, and most the people feel that it will take long for them to come out of debt. If the personal loan amount is also added in, each UK household owns almost £8,000 outstanding credit. Why the credit card balance is mounting? The reason is simple- it is the best loan for bad credit – no guarantor people.

  Can You Make The Loan Cheaper By Improving Credit Score?

Credit score is the prime parameter to scale your borrowing credibility. All the top credit score ranking agencies Experian, Equifax and Callcredit provide free to use online credit score calculators. All the three agencies rank the credit score differently. For example, a good Experian score is 700, while 800 is considered excellent. At Equifax, good credit score 660. Higher credit score means better priced deal for the required loan. Are you ready to improve your credit score? Is it possible to improve credit score within 30 days or so?

Six Tips to Improve the Credit Score Fast to Get the Cheapest Loan:

Higher rated borrowing delivers deep impacts on your financial goals. High interest rate on bad credit lending keeps you trapped longer than you expect. Therefore, whether you need a loan now or not, keeping the credit score high should be your unabated mission to brighten the prospects for borrowing in future. Following six tips will help you improve credit score fast:

  1. The person having 680 credit score has the dues 40%-50% of maximum credit card limits; similarly, 780 credit score holder may have the dues 15%-25% of maximum credit card limits. The payment of 30% of revolving balance can improve your credit score by ‘100’.
  2. If you make any payment 30 days late, credit score drops up to 60 – 80 points. If you make a payment 90 days, your credit score drops up to 70 – 90 points. Call the creditor to settle the due amount and pay in agreed installments through automatic funds transfer method; the approach will help you remove many red marks on credit history report.
  3. Removing any collection account will improve credit score immediately. Credit reports with 780 credit score don’t have any collection account. Paying any collection amount only after negotiating for “pay for delete”. 
  4. Raised credit card limits also improve credit score swiftly. Request the credit card issuers to raise the limits with soft pull inquiries because soft inquiry doesn’t appear on credit report.
  5. Charging the inactive credit cards with small amount is also a good tactic to improve your credit score; it delivers credit mix advantage.
  6. To be a promising borrower, you must have at least one revolving balance account at least 6 months old. Getting associated with a good credit history holder as the o-signer also influences your credit history favorably.  

Can You Earn Extra from No Guarantor- Bad Credit Personal Loan?

The answer depends upon the loan amount you get and the repayment period. It is always advised not to use the 100% credited funds for the intended cause. You can earn extra by using the spared borrowed money strategically:

  • Get paid to switch your bank account
  • Boost your saving rate
  • Pay off the most expensive debt including credit card dues
  • Invest for better returns
  • Start e-commerce trading by being a seller on premium platforms like Amazon
  • Negotiate for discounts on balance amount at the time of closing the account
  • Get relevant professional training that you were not taking because of funds shortage to get a better job 
  • If own a store, expand the variety according to special season like valentine day, rose day, mother’s day etc.

Concluding Note:

The growing dependency upon credit cards can’t be justified in any way because it is becoming a debt trap for most the borrowers. The easy availability of short-term loans for bad credit no guarantor gives you an alternative to minimize the use of credit card debt that is often highly priced. The best way to live a debt free life is to optimize your funds requirements and focus on the cost affordability.

Author note:

The author is an experienced lending industry expert with deep insights into the borrowers’ requirements, preferences and socio-economy factors. Guiding the bad credit score borrowers for the least priced no guarantor loan from direct lenders or other sources and for financial growth is his passion.

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