Rise in consumer credit

Posted in News About Loans For People With Bad Credit

A recent report has shown that consumer credit has grown by 3.5%, meaning that more people are being approved for a loan, credit cards and overdrafts. These borrowings are at higher interest rates than those that would have been available prior to the credit crunch,  the average interest on a personal loan is at 7%, although the Bank of England rate is only at 0.5.%.

As the average interest rate is slightly higher, this means that the interest rate on poor credit is likely to be higher. loan for bad credit are designed for people with a poor credit history, who may have no borrowing history or may have suffered a bad credit score due to poor financial management in the past. Any missed or late payments are recorded on your credit file, and if you have been issued a CCJ or Default, then this remains on your credit file for 6 years.

For some, they experience a rapid change in their circumstances, such as increase in income, however this does not affect their credit score, meaning that some potential borrowers find it hard to be approved for loans, even though they are more than apt to repay any loans that they take out.

Applying for funds with bad credit rating maybe the only option for borrowers with a poor credit score, however sticking to the credit agreement  and repaying your  loan on time has an impact on your credit file and shows creditors that you are a good person to lend money to.

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