Mortgages, Remortgages, Secured Loans and Personal Home Loans
12. Do you know if you have adverse credit
Do you know if you have adverse credit? Credit ratings are what financial institutions rely on to tell them if you are a suitable and reliable person to give credit to. Every time you are turned down for a loan or a mortgage this counts against your credit rating.
But there is no need to despair as you can apply for a bad credit mortgage or a bad credit loan or even an Individual Voluntary Arrangement (IVA). These are all forms of debt consolidation which are particularly made for people whose credit rating has given them what is know as adverse credit.
An Individual Voluntary Arrangement (IVA) allows people with debts exceeding £15000 to pay off most of their debt within a set timeframe (usually five years) and then any remaining debt is written off. You have to be able to repay at least £200 each month otherwise this financial product is not for you.
A bad credit loan or a bad credit mortgage are debt consolidation tools tailored for people with a bad credit rating. You may have to pay a higher rate of interest then products not made specifically for people who are suffering from an adverse credit rating.
However a bad credit loan can be awarded in most circumstances irrespective of what you need the loan for. A bad credit mortgage is ideal if you have been unable to secure a mortgage from other lenders.
An Individual Voluntary Arrangement (IVA) is great for people who need a form of debt consolidation but do not want to be at risk of losing their home. You do have to give up all your present credit and use the services of an insolvency practioner but to be free of debt is worth the necessary steps to get rid of constant, nagging debt.
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