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Is It Possible To Use A Loan To Boost Credit Score?

On December 8, 2020

The question is impressive, and so is the answer. Yes, you can use a loan to boost the credit rating and craft a better future. However, there should be an ample number of facts to prove this one fact because otherwise, you cannot take the exclusive benefit of any such loan.

The reasons below explain that you can improve credit score performance with a loan and also how you can do that. It is not something that one can do in a blink of an eye, but for sure, it is something progressive.

The loan that boosts credit score is – Loan for bad credit

Yes, the loan (a financial product) that you need to obtain to improve the score is a loan for bad credit. It is also known as poor credit or bad credit loan. It is an online product offered by direct lenders across Ireland.

How it improves the credit score?
A poor credit score person applies for the loan and gets an instant approval decision
Once the funds get approved the lender transfers the money to the account of the borrower
The borrower makes timely repayments, with every instalment credit score improves
At the end of the loan tenure, a promising rise occurs in the credit score.

Two purposes of bad credit loan facilitate the easy revival

The loans for bad credit in Ireland were designed to solve two purposes, and when they meet, the ultimate purpose of financial revival becomes possible. Know about the two prime objectives of the loan that helps you attain the desired outcome.

Offer financial assistance to the poor credit people because usually, the mainstream companies do not offer funds to them quickly.
The borrower can get a boost in credit score with every timely repayment. It is a specialised financial product that aims to bring financial well-being for a poor credit person.

The above two points are the actual reasons behind the existence of the loan. Improved finances are necessary for the financial well-being of not only an individual but also of the whole economy.

Solve the purpose of debt consolidation

When you consolidate debts, the burden of obligations get lighter, and that helps in attaining better credit score performance. Through a poor credit loan, you can pay off multiple small debts and then you have to pay only one instalment for the current one.

Paying off the other debts with the help of a loan for the low credit people is another way to strengthen financial conditions.
With no or less number of debts, your creditworthiness improves. When that happens, it is natural to attain a refine payment record. In turn, you can plan a better future with a good credit score.

From exploring the lucrative investment products to getting funds for any short-term or long-term purpose, becomes easy. One loan can do so many things for you; it is at least worth to consider during the journey of life.

Improved credit score means stronger customers for the finance companies

Of course, there is an indirect benefit to finance companies when they help people boost their credit rating. When people attain stability in personal finances, they can explore and exploit more products from the money world. This fact, in turn, generates more customers with stronger repaying capacity.

The overall upgrade in personal finances is beneficial for lenders, insurance companies, investment deals, etc. A nation with a weaker financial condition of the people can never see the dream of healthy finance industry. It can go in a HUGE loss and then the whole economy can turn upside down.

For a strong nation, the natives should be strong enough to be the pillar of growth. When they are happy and prosperous, they can contribute better. If next time you make delayed payments and plan to rectify the mistake, recall the fact that a loan is there to help you improve credit rating.

The above reasons explain how a loan can be used to remove the past mistakes of financial behaviour and improve credit score. The finance industry has become vast in approach, and the solutions it provides are much more versatile as they do not have multiple purposes. A poor credit loan that not only offers funds but also facilitates revival from derailed finances is undoubtedly a progressive thing. Now the people with payment history flaws do not bear discrimination because they have an option to explore.

How to Decide Debt Repayment Method

By admin

On December 7, 2020

In Loan

Once you have fallen into debt, it seems all but impossible to get out of it. Do not lose hope because there is still a way to overcome the mounting burden of debt. When you are juggling with multiple debts, you have two methods to consider: debt avalanche or debt snowball.

A debt avalanche method will allow you to settle your debts from high interest to lower interest debt regardless of the balance. In contrast, a debt snowball method will allow you to pay off from the smallest balance to the largest balance irrespective of interest rates.

It can be not very clear to find out which method is more appropriate for your financial condition and goals. For some people, the debt avalanche method is more ideal because you can save money in interest while others will find the other method more ideal because it helps build motivation.

When you have a lot of debts like 24 hour loans in Ireland, credit card bills, and auto loans, you will scratch your head before arriving at a decision. You might be confused about whether you should pay high-interest debs first or low-interest debts first. Do away with all of your worries because below are the reasons explained when which will be an ideal choice.

When should you pay off debts with high interest first?

Most of the people find it beneficial to pay off debts with high interest first. This makes sense because you can save a lot of money in interest. Debt with high-interest rate will cost you much more if you do not pay them off as soon as possible.

The money you save in interest will pay you off in the long run. You can use that money toward the repayment of other debts. However, not everyone particularly fits in this scenario. Your high-interest debt is likely the largest.

If you try, your high-interest debt is likely the largest debt. If you try to pay it off first, it might take more than a year to get settled. Of course, paying your high-interest debt plan will not stand you in the stead. It will be painful when you find that you are not reaching your goal sooner. You will get demotivated and eventually give up in the middle.

When should you settle your small debts first?

This method will be an ideal choice when you find it motivating you. Of course, you will have to look over your financial condition before opting for the plan. If your budget does not have enough wiggle room, you will undoubtedly continue to repay small debts first.

Not only will it keep you motivated, but it will also help you reach your goal faster. However, you will still end up paying a lot of money in interest. This is because you will pay larger debts in the end.

Sometimes you may need to follow a balanced approach

If you want to reach your financial goal, you will have to be more strategic and balanced. You may be buried under several debts, but all of them may have more or less similar interest rates. For instance, credit card bills and outstanding cash loans will not show a significant difference in interest rates, and you may have no other debts except a few small loans.

So, you can decide which to pay off first quickly. A good rule of thumb says that before you decide on a debt repayment method, you should find out which will yield benefit to you. If you can save money with the debt avalanche method, go ahead with it. Otherwise, opt for the other method.

Remember that you cannot back out once you have chosen the plan. It is always advisable to opt for the plan carefully. Otherwise, you will not stay focused and end up being in a never-ending cycle of debt.

If you have stuck with multiple debts and want to get out of the, you will have to decide which repayment method will suit you. Analyse your financial condition and then make a decision. Do not forget that you will have to stick to your plan until you have settled all of your dues.

Should you consider financing a wedding through personal wedding loans?

By admin

On December 7, 2020

In Loan

We cannot deny that weddings are expensive yet one of the most memorable days in any person’s life. It is a new beginning in one’s life. Maybe your parents might have saved funds to finance your wedding, or you may have done it for yourself. An average wedding in the UK costs around 31,000 pounds and this is indeed a considerable amount. Sometimes you may find it challenging to manage this amount of money to enjoy your wedding.

Wedding loans come to your rescue and help you to get through the dream day. But this sounds so easy, is it really? Let’s find out.

An introduction to Wedding Loans

It is a personal loan that can be borrowed to meet the wedding expenses. You can repay the amount in fixed monthly instalments which will be decided by your lender. You will obviously have to pay the interest rate with the loan you have borrowed. Do you know a wedding loan is a collateral-free loan? It means that your interest rate will be much higher than secured loans.

If you fail to repay the money, then your lender cannot repossess any asset that you own but can send you a legal notice. You can also be issued with County Court Judgement (CCJ) which will affect your credit score and report for six years.

What are the advantages of a wedding loan?

If you have considered lending some funds for your wedding, it has certain benefits which you should know of. The first one is that it is easy to apply. You just need to visit the website and file an online application. You can also get flexibility on deciding the terms to allow you a budget for the payment schedule.

If you can pay the loan on short notice, then you can get less interest rate. But, a higher interest rate means shorter monthly instalments. A personal loan can also help rebuild your credit score.

Wedding loan with bad credit

To solve your problem, you can get a loan with a bad credit score. But you need to keep in mind that you will not get the best loan deals. You will get a higher interest rate than the average rate.

How to apply for a wedding loan?

You can easily apply online through the website and provide details such as income, age, credit score, etc. They will want to know your employment status to know if you can pay back the loan amount or not. After assessing your application, you will hear back from your lender within 24 hours.

What details must you know about?

Wedding loans range between 2500 pounds to 25000 pounds for two years to five years. You get 3.5% APR and fixed monthly instalments. There are no hidden charges and arrangement fees. You need to keep in mind how you will repay the amount in the given term. The maximum APR you can get is 34.9%.

What to do if your wedding is cancelled?

First, we recommend you is to get wedding insurance before taking any loan. The reason behind it is that you will have to pay the loan in the full amount and there is no refund. If you have used the money to pay for some part of your wedding, then you can claim it back through wedding insurance.

Are there any alternatives to a wedding loan?

If you don’t want to borrow a personal loan, then you can opt for some other options.

The first option is to get a 0% credit card, which is one of the affordable ways to pay for your wedding. Many credit cards offer a 0% interest rate for mid-sized purchases. But you should keep in mind that an interest-free credit card can be costly. Make sure to pay back the full amount before the interest-free days’ end; otherwise, you will be charged.

Another option is cashback or rewards credit cards. This way, you can get a percentage of what you have spent in the form of cash or vouchers. This is not an excellent way to save money, but still, you can get some of the money back from what you spent. You need to take care of the repayment period as your interest rate can be increased than the value or reward you are getting than the card.

You can also get small loans for small instant expenses ranging between 50 pounds to 1000 pounds. It is only for some urgent expenses which can cause you sleepless nights. You can get small loans in Ireland and any of its part such as Limerick, Dublin, or Northern Ireland.

When you don’t have any funds to finance your wedding, then a personal wedding loan can help live your dream day. You just need to take care of the high-interest rate and monthly instalments before deciding to borrow money. Plan ahead and smartly.