Can I Avail Long Term Loans to Improve Poor Credit Score?

Posted by Jemma Madison on March 16th, 2018

Applying for a long-term loan for bad credit could be an essential step to save you from bankruptcy. It takes a lot of courage and will-power to apply for long-term loans with elusive credit health. In most cases, accumulated debts are a result of wrong borrowing decisions and failure in managing financial obligations. Whatever be your case, it is time to restructure your credit profile and make a prudential financial decision today.

Herein a loan broker can particularly help you make an informed decision. Brokers are not the loan sellers but the advisors. You can contact them to get access to tailored loans for people with troubled credit past. Whether you are looking for a long term debt consolidation loan or need a personal loan to pay out your expensive debts, it is important to carefully assess your credit situation.

Assess your credit profile

Evaluating your credit health helps you make a wise decision according to your repayment capacity. To quickly calculate your repayment capacity you can pull out your credit report and make a sum of your total obligations, including all loans and credit cards. Next, calculate the average interest rate you are paying for these loans every month. Finally, also make a sum of how much you earn every month.

Now calculate the cash gap you seek to fill with the help of an additional loan. You can also note financial obligations with very high-cost loans and look for possibilities of closing these accounts. It will narrow down your credit burden to some extent.

After this basic evaluation, you can contact an FCA regulated loan broker and share your specific credit requirement. The broker can suggest you refinancing or debt consolidation at a cheaper price. By choosing debt consolidation, you would basically borrow a high ticket loan potent enough to cover all of your small loans. The idea here is to make your multiple monthly loan instalments into a single instalment which is cheaper than before.

In most cases, the cheaper instalment is the result of the increased duration of the loan. And thus it would be deluded if you assume that your loan would become cheaper after consolidation. The shorter loan instalment is the result of increased duration and thus the overall cost of a loan could be more than what you were paying earlier.

The sole aim of opting for long term loan is to make your debts manageable. With a lot of patience and financial discipline, you can gradually lower your debt burden over the time.

Using a broking advice you can apply for secured or unsecured debt consolidation. A lot of borrowers opt for secured debt consolidation loans against their home equity. This helps them avail cheaper loan with more flexible terms. By involving loan security you need not fear about loan rejection owing to a credit check.

Always opt for the most affordable loan according to your credit health. Choose ease of repayment and make sure you pay out the debt on time. With timely repayments, gradually you can build your credit health and improve your score.

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Jemma Madison

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Jemma Madison
Joined: September 11th, 2017
Articles Posted: 6

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