Credit Card, Loans or HP Debt and Default
Taking out a loan today or getting a credit card is easier than ever however keeping up with repayments can much more difficult.
Taking advantage of the interest free period that a credit card provides is great as long as it is managed sensibly and all or most of the balances paid off each month however, the interest rates charged by most credit card companies are very high and a comparatively small outstanding balance can quite easily become a large financial burden.
Loan interest rates vary enormously and before signing up for any loan, it is always a good idea to look at the total amount that will be paid over the term and what the small print says regarding non-payment if there were to be any difficulties later on.
Many people do experience problems with meeting credit card debts or loan repayments and this can easily lead to a bad credit rating which can cause difficulties far into the future when it comes to trying to arrange a mortgage or to get a better deal by re-mortgaging.
Some mainstream mortgage lenders turning down borrowers with a bad credit history which in turn can then adversely affect the credit rating still further. There are also a number of less well-intentioned companies providing mortgages to those who have current or previous credit issues who will sometimes charge very high fees, extensive pre-payment penalties on the home, or ask for upfront fees to "process" the loan. These lenders may try to take advantage of borrowers with credit card debts or missed loan repayments because they know that the loan options are limited.
However, fair deals on mortgages and re-mortgages are available for those with a history of credit problems and our specialist mortgage advisers are experienced in finding the right mortgage for anyone in this kind of situation. If you would like us to help you to find the best deal available for you or for help and advice, please use our Mortgage Enquiry Form below and one of our experts will contact you. Alternatively, you can give us a call on 0845 108 0505.
