Contributed post
It’s so easy to get in debt, and if you’ve fallen down this slippery slope and ruined your credit score you’ll know it can be tough to live with the consequences. When adverse credit stays with you for six years, it can mean mistakes made in the past can come back to bite you later on and make life difficult. However if you have poor credit, it doesn’t necessarily have to hold you back. Here are some options when it comes to lending.
Buying a House
Getting a foot on the property ladder is one of the most significant things you can do in your adult life. It means you’re no longer wasting money on rent and it gives you stability and security since you have a solid asset that will continue to appreciate in price. You might think once you have a poor credit score that a mortgage is off the cards for you, but there are actually specialist lenders who can still make it a possibility for you- you can learn more here. Another thing you can do when you don’t have a great credit score and want to buy a house is to have a larger deposit. Lenders will see you as much less of a risk with a bigger deposit, and it can be the difference between being rejected and getting a yes. A deposit is a lot of money, so it might be a case of saving for another year or two before applying so you have 10% or more, rather than the standard 5%.
Buying a Car
Having a car gives you so much independence, you can easily get around and it can broaden your horizons with things like work when you’re able to travel. The trouble is, cars are expensive and not everyone has the kind of money upfront to make a purchase. Car finance is often easier to get than other forms of credit so even if you’ve been rejected for a loan it’s worth applying. Again another option would be to put down a larger deposit to improve your chances of being accepted, or you could try using a guarantor. Many companies will accept you if you have a working guarantor who earns over a certain amount who can vouch for you, they are liable to cover your payments if you miss any but if you’re sure you can afford everything then it won’t be an issue. It often works out cheaper to get finance so you can get a slightly newer and better car compared with buying an old model upfront, as the insurance and repair costs will both be lower. Insurers often charge more for older cars as they can be tricker to repair and are more likely to fail. Plus they have less safety features included.
Taking Out a Loan
Sometimes life throws up a situation where you need access to cold hard cash. It could be money for medical, dental or vet costs if you don’t have insurance. It could be an unexpected bill or expense such as a car or appliance breaking down. You could even get stranded while you’re on holiday and need money to get home. Either way, being able to access money when you need it is useful. If you’ve already been rejected by a main high street lender, don’t keep applying with similar companies as you’re likely to get the same response. Instead, choose a lender that specialises in people with bad credit. You will pay more interest here but it’s an option if you really need the money.