A bad credit score can cost you high interest payments. Make efforts to improve your score.
If you find an ad for a cell phone costing £200, you will not want to step into the shop to be charged £400 for it, but millions of borrowers have been trapped into debt because they end up with getting the contrary to what was advertised.
The loans with no obligations, from reliable direct lenders like First Choice Finance, usually trickle your fancy because of two prominent features, which make your application instantly approved, same day approval and no guarantor with a good credit history.
With experience of decades in the lending industry, the direct lender has evolved the most reliable way to finance your unexpected expenditures that will keep you from falling into a permanent debt circle into the bargain.
Managing debt is beyond your capacity by reason of a few bad habits, which are worth quitting.
Minimum payment of credit card bills
You must know the implications of your financial behaviour if you want to maintain a very good credit score. Every purchase you make on your credit card you are supposed to pay within the given grace period in full. With partial payments, interest will accrue on your outstanding balance, which opens all doors for your credit card company to make profits. This lowers down your score and makes difficult to get out of debt.
Many short-term loans such as loans for bad credit with no guarantor, cash advances, and text loans come with ‘no obligation’. Your lender is not giving away money rather they want to earn profits on the deal, interest on the top of principal.
Missing a payment of your debt and pending credit card bills linger on your report for seven years that means you will not be eligible to take out a new loan at a lower interest rate. If you do not settle your dues on the due date, you will be charged late payment fees. The lender will not report about your default unless the next 30 days have been expired.
Applying for multiple credit cards
Credit card companies will persuade you to apply for new cards with attractive benefits if your credit score is excellent. Do not throw your caution to the wind if you receive such calls. Multiple credit cards will tempt you to overspend even though you do not need to make an urgent purchase, and you cannot dodge annual charges even if you decide to keep the balance unused. Too many credit cards can lower down your credit score too.
Using cash advances
Credit card companies allow you to withdraw cash with your credit card during emergency, but interest on cash advances charge higher interest rates than credit card purchases and you will not be given a grace period.
Loans for bad credit carry unattractive interest rates because of high defaults. Remember that your payment history make up one-third of your credit score. Make sure that you pay all your dues on time. However, at First Choice Finance, you can get guaranteed payday loans for bad credit at much affordable rate of interest even with less-than-perfect credit history.