A bad credit history is something that many people are facing in these tough economic times and if you are one of them you may also be facing a poor credit score as well. A credit score is a number that lenders use to determine your fiscal responsibility. If you are bankrupt, late on payments or in default on a loan, chances are you are going to have a difficult time getting credit and what happens if you need access to emergency funds because of a broken washing machine or fridge freezer? Without good credit, it is necessary to have a hefty savings account for those emergencies and in these times your savings account may already be depleted.
A bad credit history can negatively impact your life, not only in the big areas but in the small areas, too. Raising your credit score and improving your bad credit history is necessary in these troubled times and the only lasting way to get out from behind a bad credit history.
However, if you have a poor credit score and are short on emergency funds, you may be able to get a short-term loan through a cash-advance loan company in the UK. Credit checks are not performed with these loans and most people can get one even if they have a bad credit history. You can even apply for these loans online. Short-term loan companies will, at times, advance you a good chunk of money despite your credit score. This can be tempting to someone with a bad credit history, especially if they are in dire need but the long-term consequences can be detrimental on someone with a poor credit score already.
The APR on some of these loans can exceed 400%. When shopping around for a short-term loan make sure you read the fine print. These loans can be helpful to people with a bad credit history if it is a true emergency and if they are certain that they can pay back the loan within the allotted time frame set forth in the contract. Most short-term loans require that you have a debit card to open a loan, since it is their preferred method of payment. You can use your debit card to pay weekly on your loan or you can choose to use direct debit. Direct debit allows the loan company to take payments directly from your bank account on a certain day of the month.
Having a bad credit history or a low credit score does not mean you have to continue to make poor financial decisions. Try not to use short-term loans to go shopping for things like sofas, a TV, television accessories, like Blue Ray DVD players, or video game units like Playstation 3 (PS3), XBOX, or Nintendo WII. Use short-term loans as a last resort for true emergencies like your washing machine or fridge freezer breaking down.
Just because you may have had a CCJ, insolvency, default or bankruptcy doesn’t mean you can’t get a short-term loan but be cautious and don’t let your credit score be affected by not repaying the loan under the terms of the contract