Mortgages, Remortgages, Secured Loans and Personal Home Loans
17. Credit ratings are assigned to everybody
Credit ratings are assigned to everybody who is eligible for credit. If you have reneged on a financial agreement in the past, missed a payment or even just been late with a payment this will give rise to a bad credit rating. If you are already in debt this will equate to adverse credit.
It would be a good idea to think about debt consolidation. Some financial products such as bad credit mortgages and Individual Voluntary Arrangement (IVA) are available. You may need to apply for a bad credit loan. This is a specially prepared loan for those people who are having difficulty securing a loan from normal creditors.
You may be paying high interest to a variety of creditors at this moment in time. It would be beneficial to amalgamate your payments as a debt consolidation exercise so that you only pay out one monthly sum to either a bad credit loan or a bad credit mortgage or even an Individual Voluntary Arrangement (IVA). If you could keep up with your monthly payments and reach the end of an agreement without breaking its terms then your adverse credit rating may improve.
It is worth mentioning that if you default on a bad credit loan or a bad credit mortgage then your home may be at risk if the loan was secured. If you want the security of knowing your home is not in jeopardy then start an Individual Voluntary Arrangement (IVA). However this form of debt consolidation requires you to owe at least £15,000 and be able to pay off at least £200 per month.
Unsecured bad credit loans may be your answer but these are much more difficult to get hold of as they are seen as a riskier bet to the creditor. Choose the right product for your circumstances.
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