What is Debt Consolidation?

What is Debt Consolidation?

Debt consolidation is when you have more than one debt to pay off, so you decide to combine your debts to pay them off together, rather than repaying them separately. In order to do this, most people will decide to take out a debt consolidation loan. With a debt consolidation loan, you get a single, larger loan which is used to pay off all of the smaller loans you have taken out after combining them, thereby avoiding having to pay multiple interest rates on multiple products. Debt consolidation loans are great for people who have borrowed from various sources and […]

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What is the Difference Between Secured and Unsecured Loans?

What is the Difference Between Secured and Unsecured Loans?

A secured loan involves borrowing an amount of money and ‘securing’ it against a valuable asset such your home or your car. An unsecured loan is not secured against anything, but interest rates are often a bit higher because of the lack of security and you are usually not able to borrow as much as you could with a secured loan. There is a risk of your asset being repossessed if the loan is not repaid on time. With large amounts typically borrowed, the lender has some security that they will be able to recover the amount they lend out. […]

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What is Underwriting?

What is Underwriting?

Underwriting is the process by which lenders decide if a person is eligible for a loans product. Eligibility is measured in a number of ways, essentially in order to decipher if a person is a low-risk customer and are trustworthy enough to make repayments each month. A loan provider will make their approval or decline decision based on the profile of that applicant. Factors that are looked at include: your age, your occupation, your credit history, where you live, and your income. Naturally, analysing your credit history is important for a lender to determine how much risk they take on. […]

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7 Ways To Improve Your Credit Rating

7 Ways To Improve Your Credit Rating

A credit score must be protected and nurtured to enable you to get the best possible loan deals and save yourself money. If yours is not where you would like it, then consider applying our 7 tips to improve your credit rating. In this article about 7 ways to improve your credit rating we shall examine: Why a credit rating matters Managing your credit cards Rectifying mistakes Breaking ties with ex-partners Keeping up with repayments Why do I need to worry about my credit rating? Your credit rating is the most important measure that lenders have to judge your creditworthiness […]

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