Monthly Archives: October 2011

Poor Credit Rating? Consider A Guarantor Loan

Poor Credit Rating? Consider A Guarantor Loan

Have you got a poor credit score and need money to start a business, buy a car or something else entirely - consider a guarantor loan to help get you started.

A lot of the personal loans or short term loans available for people with a bad credit rating tend to have high interest rates (APR).

Fortunately, the likes of guarantor loans have interest rates that are around the same as standard high-street bank loans. However, guarantor loans are for people with poor credit scores, unlike a standard unsecured loan from a bank.

Guarantor loans are growing in popularity, especially since they can offer larger loans over a longer period than standard short-term or payday loans. They’re especially good for young adults who want to take out a loan but don’t have the hottest credit rating. Essentially a parent or guardian can act as a “guarantor” for them so that, if they’re unable to repay the loan, the parent or guardian takes on the debt and repays it on their behalf.

This is probably the only significant downfall of a guarantor loan – you have to rely on the fact that your parent, guardian or friend will repay the loan if you can’t. You should only really consider this type of debt if you’re reasonably confident that you will be able to repay it or that your loan guarantor will be able to repay it if you’re unable to.

Its worth remembering that, unlike a payday loan, a guarantor loan can pay anything up to around £10,000 or more in some instances. It’s merely reliant on the good-word, financial status and credit history of your guarantor…

It probably sounds like quite a lot of hard-work – and it is, it’s no online payday loan application that’s for sure! But, if you need to improve your credit score and you need a large sum to buy a car, start a business or simply need to get yourself out of a rut then it might be worth considering.

Get A Guarantor Loan >>

Can I open a bank account with a bad credit history?

Can I open a bank account with a bad credit history?

Find out how you can open a bank account even if your credit rating isn't so hot!

Suffering from a bad credit rating can be a difficult situation to be in, but the answer is yes, you can open a bank account with a bad credit history – simply apply for a bad credit bank account and you shouldn’t be turned down because of your credit rating. Just like any other account, you’ll need to prove your identity and address and you will need some documents to do so, such as a passport or driver’s licence.

Why you can’t open some accounts with bad credit

If you have bad credit, you could be turned down for a ‘standard’ bank account: you’ll need to pass the banks’ credit checks to open all sorts of accounts.

If a bank doesn’t like something in your credit history, they can turn you down.

If your credit history includes something more serious than a few missed payments – such as defaults, a CCJ (County Court Judgment) or bankruptcy – where do you go for a bank account?

Bad credit bank account

A bad credit bank account is another term for a basic bank account. There is no overdraft with an account like this but you can still arrange Direct Debits, use cash machines and pay in an income, pension or benefits. A bad credit rating won’t stand in the way of opening one of these accounts.

The bad credit, bank account from thinkbanking doesn’t require a credit check and is even open to undischarged bankrupts. You simply need to prove that you’re over 18 and resident in the UK. You can find out more about the bad credit bank account here: http://www.thinkbanking.co.uk/bad-credit/.

This type of account can also be suitable for people with a moderate credit rating – those who don’t have any really serious issues with their credit rating, but who may have been turned down for a standard current account elsewhere, or who may like the idea of a bank account with no overdraft facility.

A Quick Guide To Personal Loans

A Quick Guide To Personal Loans - unsecured loans, secured loans and guarantor loans.

A Quick Guide To Personal Loans - find out more about unsecured, secured and guarantor loans.

Unlike payday loans, personal loans are larger sums of money that you borrow over a long period of time.

The interest costs for personal loans can vary from lender to lender and will depend on whether the loan is secured or unsecured.

What is a Secured Loan?

A secured loan is a loan that is secured against an asset, such as your car or even home. If you are unable to repay the loan, the lender can sell your asset as a way of getting it’s money back. Whilst the APR interest rate on a secured loan tends to be less there could be additional fees and charges.

What is an Unsecured Loan?

Unlike a secured loan, an unsecured loan does not need an asset to guarantee the loan against. However, like any form of borrowing, you will need to repay the loan in full. If you fail to repay it the lender could take legal action against you in order to get its money back. It’s vital that you repay an unsecured loan in full as, if you default, your credit score could be severely damaged – meaning that you could be barred from taking out credit cards or personal loans for a number of years.

However, there are alternatives to unsecured loans, such as guarantor loans.

The only difference with guarantor loans is that they are secured against the word of a “guarantor” (a person who promises to repay the loan on behalf of the borrower). Whilst this tends to be a good form of borrowing, if neither you or your guarantor are unable to repay the loan then there could be serious implications.

In spite of the obvious advantages and disadvantages of each form of borrowing mentioned here, the main advantage is the positive affect they could have on your credit score if you repay them in a timely manner.

As a consumer you have a duty to protect your own interests and understanding the benefits of pitfalls of different types of lending is a significant step in the right direction.

To find out more about borrowing money and finding the right product for you, check out our other financial guides:

Christmas Credit Cards – Beating The Rush

Christmas Credit Cards - Beating The Rush

Christmas Credit Cards - Beating The Rush

Christmas credit cards?! Yes – it’s barely October and we’re already talking about Christmas. Just look around the shops on the High Street – they’re already getting the Christmas decorations in and gearing up for the Christmas season – shouldn’t you be?!

As strange as it sounds it will be November and then December before you know it and – wham! Christmas hits and hits you hard. So now is the time to get ready for it with the right credit card.

Ok, so there are still three months to go before Christmas hits but you’d be surprised at how quickly it can creep up on you and the costs start to mount up!

The majority of Christmas shoppers with any shopping “savvy” are already thinking about buying presents (this author’s wife being one of them!).

Unfortunately costs can mount up and sometimes it’s easier and more cost effective to use a credit card in the lead up to Christmas, as long as you’re careful with your spending.

But now is the time to get a Christmas credit card as it can take as much as 10 days to be accepted, let alone get that precious plastic card.

If you’re familiar with credit scores you will probably know that this is due to the credit checks they need to run on your credit history to ensure you qualify for a card.

Once the usual checks have been run and your application processed you will eventually receive a credit card and pin in the post… so you could be looking at around 2 – 3 weeks before you receive your card!

So, to avoid missing out on special deals on your Christmas credit card spending or face interest payments on debts accumulated over this expensive time of the year.

There is a wide range of credit cards on offer and it’s important to look around for the right one. Creditwindow offers a range of credit cards – for people with poor credit and those with good credit scores – Creditwindow can find the right card to suit your needs.

To find a credit card to suit you visit Creditwindow’s credit card section and see how much time and hassle you could save!