One Way to Build your Credit Rating

March 8, 2011 - PRLog -- Perhaps you have had financial difficulties in the past or just never had any credit before, both these situations can be frustrating if you’re in the need of a regular short term lending solution.

High street banks turn you down and this only makes the situation worse, more applications for credit actually lower your credit rating even further.

There is a simple solution to this, and in fact plenty of choice out there, the economic climate has opened up many more lending potions for people who now find themselves less secure.

Taking out one of these short term loans is a great way to repair a poor credit history, be this one caused by defaults or just lack of history.  Be mindful though of the interest rates and at all times make sure you can repay the loans each week / month. These loans are generally designed for short term tie me over type situations, maybe your car has broken down or an unexpected bill has just landed on the doorstep.

Types of loan that can help repair your credit history vary, and it’s worth taking a few moments to consider carefully what you need to borrow and how long do you need to pay it back over, i.e. how much can you comfortably afford to pay each week. Do you need a one off loan for an emergency, then a payday loan might be suitable, borrow a small amount and repay when you next get paid, although usually this can be spread over slightly longer, but remember the interest added will go up the longer you take to repay in full.  

Need slightly longer or a larger loan, look at logbook loans, if you own a car, van or motorcycle and there is no existing finance outstanding on it then, subject to a few conditions longer term loans can be secured against the vehicle. But again watch the amount of interest that has to be repaid.

Another consideration is slightly different to straightforward loans like the above, like all loans credit cards have pro’s and con’s but taking out a credit card through Vanquis Bank (which happens to be part of the Provident group, so been around a while) can really repair a credit rating, it’s flexible so you can use it as and when you need to, plus settle your balance very month in full and pay no interest at all, but don’t settle each month or only pay part of the debt back and interest will mount up quickly. Borrow a small amount each month and repay every time on time and this will build your credit rating thus enabling you to get access to more loans at better rates of interest.

In an ideal world none of us would have to borrow money but when you have to it needs careful consideration and for the shortest length of time at the lowest interest rate. Use these high interest rate loans just for emergencies and to repair your credit rating.

Credit Cards http://www.short-loans.com/vanquis/build-your-credit-rating/
Short term loans http://www.short-loans.com/
Logbook Loans http://www.short-loans.com/logbook-loans/

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