Should You Take Out A Loan?

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Loans can be convenient ways of accessing funds in an emergency, however there are cons to taking out a loan such as having to pay back the debts and having to meet loan requirements. Here are a few things to consider before you resort to a loan to ensure that it’s the best decision for you.

Consider your purpose

First, you should consider why you need a loan. Is it something you physically need or something you simply want? Emergencies such as car repairs, home repairs and veterinary treatment are all worthy causes to use a loan. Similarly, if you’ve run out of money before payday and need to eat, a loan could be necessary. A new TV, a holiday or a new handbag aren’t so worthy of a loan as they’re not things you need.

There are purposes that definitely do not warrant taking out a loan. You should never borrow money to gamble with – if you lose your bet, you’ll have given yourself debts for no reason. Similarly, you should never take out a loan for someone else – if they can’t take a loan out themselves, it’s probably because lenders don’t trust them to pay the money back and you shouldn’t trust them either.

Check your credit score

A low credit score could prevent you from taking out a loan at all. It’s worth doing a free credit score check online first to determine whether you’re likely to be eligible for loans – applying to loans only to get rejected could lower your score even further in some cases.

If you’ve got a good credit score, then it’s likely you’ll have little trouble applying to loans and you may be able to find lower interest deals. If you’ve got a poor credit score, a loan might be best avoided – the few lenders that will accept you are likely to charge extortionate interest rates that make it largely a waste of money.

Michael Longmire
Assess your monthly budget

It’s important that you’re able to pay back the repayments on your loan each month. If you’re already falling behind on monthly bills, loan repayments could add to the monthly burden and add to your snowballing debt. You may be able to use a budgeting app to assess whether you’re able to afford a loan.

Look into other ways of raising funds

A loan isn’t the only way to raise funds in a hurry. By exploring other options, you may not have to deal with debts and interest.

Saving up is one way to raise funds but it is slow and not always possible when it comes to raising large amounts. In the case of starting a business, you may be able to raise funds by seeking investment either via crowdfunding or angel investors.

There’s also the option of selling your clutter for cash to raise funds. Unused possessions in your home could be of value to someone else and could be a means of making some extra cash in a hurry. Taking up odd jobs online could be another way of making some extra money fast.

Ways To Build Up Your Credit Score

I don’t know you but I find credit scores bizarre things. I understand why they drop when you have a high amount of debt and aren’t paying it off but I also find it crazy that if you manage to pay it all off, it also drops for a little while. My credit score is currently not too great so I was thinking about ways to build it up.

Make sure your name is on the electoral roll

If you want to get credit in the future, your name needs to be on it.

Pay Off Your Debt

If you cut down your debt, then your credit score will increase- but as I mentioned before, don’t pay off all in one go as this will cause it to drop down too. Pay it off steadily and as debt goes down, your score goes up. Make extra money wherever you can to wipe out your debt as quickly and as steadily as you can.

Rebuilding your credit itself may be worth trying.

You could choose to use a credit rebuilding card or perhaps a loan for those with bad credit such as CashLady – but only take these out if you can keep to the repayments. These will often be higher interest than those available to people with better credit but they are great for helping you build up your score if you are making regular repayments and not missing any payments. You can pay way over the minimum repayment if you like – as long as you are paying it off regularly, it will help boost your score.

Artem Bali

Check for errors

If you have errors on your credit report, you will want to get them removed. Checking on a regular basis means you will spot them quicker.

Pay on time

My final point to building up your credit score is to make sure you are paying bills on time. I know it can be hard to juggle everything, especially when finances are super tight, but if you are determined to get your score up, then you need to make sure those bills are getting paid on time. Selling old stuff, getting a second job, taking on overtime – do what you can to keep up with everything and you should reap the rewards when it comes to your credit score.

These are a few ways you can build your credit score – do you have any suggestions?

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Financing 101: Keep in Control of Your Cash Today

Money is often among the biggest worries for people in the modern world, and this is because it is difficult to make ends meet these days. There are so many wonderful ideas and options that will go a long way toward helping you be more financially secure. There are a lot of things that play a role in the way you manage and boost your finances, and it is important to get this sorted as much as you possibly can.

There are a lot of things you have to keep in mind when you are trying to take control of your cash. It seems like there are more and more rising costs these days, and it is becoming harder than ever to make ends meet. So you have to make sure you do as much as you can to keep on top of things. These are some wonderful tips that will help you manage your money better starting right now!

Understand Your Expenses

It is so important to make sure you understand your expenses, and that you do what you can to improve and enhance the way you spend your money. Your expenses are what require the most attention because this is where you can learn your financial responsibilities, as well as looking at how you can save money as much as possible. By studying and understanding your finances, you are better placed to be able to account for them.

Artem Bali
Consider Taking Out a Loan

Now, we all reach a point in our lives when the possibility of taking out a loan crosses our minds. The thing to keep in mind here is that you need to know about the different sorts of loans that are available, and what the terms of them are. Whether you’re looking at BWG Finance bridging loans, payday loans, or guarantor loans, it is essential to make sure you know what you’re getting into when you take out a loan.

Set Financial Goals

We should all set financial goals for ourselves because these are really important for helping us determine the future direction our money is going to take. This means you have to take a lot of time to sit down and plan out goals for the future. Setting yourself financial goals can be very challenging, but this is what keeps you on the right path, and allows you to improve your money management.

Hire an Accountant

Hiring an accountant might seem like just another added cost, but it is actually going to go a long way toward helping you improve and enhance your financial situation. Accountants are financial experts who are well-placed to help you make the best possible decisions. You will really benefit from the support and advice an accountant can give you, so keep this in mind today.

Your financial situation is one that you need to keep on top of right away, and the best way of achieving that is to follow hints like these. Being in control of your cash makes such a big difference to your life in general, and there are a lot of things that need to happen to achieve this. It is important to understand exactly what is involved in the process of money management, and if you can ace this, you will be much more financially comfortable.

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