In March 2020, the world changed forever, a pandemic left no country or island on earth untouched by Coronavirus. Many people were left out of work, or struggling financially with lower incomes and reduced hours.
As a result, two years of lock downs, and Covid restrictions, many people were unable to pay their debts, from credit cards to loans, overdrafts, mortgages and credit agreements. This was a highly unusual situation for people who normally manage their finances well.
Unfortunately the reality was only too often people would default on their repayments, this created bad credit scores and ratings, and whilst many banks were helpful pausing or freezing credit repayments, it was more likely that these accounts were put into special measures leading to further damage to individuals credit ratings.
A bad credit rating can affect anything from applying for a mortgage, to renting a home, to applying for a new credit card or taking out loans and credit agreements for everyday living.
This can create stress and worry where the need to borrow is essential to keep on the straight and narrow.
Banks and interest rates fluctuate regularly and this can be difficult at the best of times, leading to questions about when is the right time to borrow?
Thankfully, there are many companies who can help out when your credit rating is poor or even terrible. A bad credit loan from a trusted provider is a great way to start rebuilding your credit score. Whilst the interest rates will usually be higher, if you borrow and repay larger amounts over a shorter period the excess interest can be mitigated.
With the present war in Ukraine, and a world recession on the way, acting now to start building good credit will help in future, meaning you will be in a better position to borrow at a lower interest rate further down the line.
Borrowing to repay existing debts which are costing your more in interest is also a good way to bring down your monthly out goings. Borrowing to help improve your credit rating is the preferable reason to borrow form a bad credit loan provider. Taking out loans with very high interest rates to buy items for the home or Christmas presents is perhaps not such a great idea, it is always advisable to only borrow what you think you can afford to pay back.
In some cases, a bad credit score can prevent an individual from renting leading to worry about having a simple roof over their head. It is possible to improve your credit rating within a 6 month period if you prove you can pay back a loan regularly, this means you will be in a better place to take out a lower interest loan later on and pay off the debt.
Whichever way you choose to borrow, the main purpose of a high interest loan should be for emergency reasons or to clear bad debt.