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Do I Need to Boost my Credit Score before I can get a secured loan?

Bad Credit Loans

Secured Loans > 5 Simple Steps to a Better Credit Score

5 Simple Steps to a Better Credit Score

Your individual credit score informs companies about your financial situation before they decide if they are willing to lend to you. If you possess a higher credit score, then you may be considered less of a risk to lend to than if you have a lower, ‘bad credit score’.

There’s plenty of benefits to improving your credit score such as lower rates of interest, higher credit limits and access to more offers and potential loans in the future. So, if you’re struggling to receive credit, take a look at these 5 simple steps to a better credit score.

Register on the Electoral Roll

Ensuring that your current address is registered on the electoral roll can help to improve your credit score. If your name isn’t on there, then you may find it challenging to receive any credit.

You don’t have to own your home to register and even if you live with family or friends in shared accommodation, it can have a positive effect on your credit score. It can also help to stay at one address for a longer period of time rather than moving around regularly when trying to obtain credit.

Check for Mistakes & Fraudulent Activity

Checking for any mistakes in your information or suspected fraudulent activity is another simple step you can take toward a better credit score.

Any mistakes from misspelt addresses to incorrect payment details can harm your credit score. Making regular checks to ensure all the information is correct and reporting any mistakes can help you maintain a healthy credit score. You should also check for any fraudulent activity, such as someone applying for credit in your name and make sure to contact the credit reference agency as soon as you become aware.

Build Up Your Credit History

Another simple step to a better credit score is to build up a credit history, as without evidence that you are able to make repayments, it can be difficult for a lender to assess the level of risk when deciding whether or not to accept your loan application. If you have not taken out a loan, or form of credit in the past, then your credit score is likely to be low.

If you’ve received County Court Judgements in the past, then this may have had a severe impact on your credit score. It can also be beneficial to pay off any other outstanding debt before applying for new credit.

Make Payments On Time & In Full

Being reliable with your payments is an essential yet simple step to improving your credit score and building up your credit history. Making payments on time and in full demonstrates to lenders that you are capable of repaying the borrowed amount and managing your finances responsibly.

This can include bills too as regularly paying for a phone landline or broadband contract can help to demonstrate to lenders that you can manage your finances.

Keep Your Credit Utilisation Low

Your credit utilisation is the overall percentage of your credit that you’ve used. A high utilisation is a sign that you may be experiencing financial difficulty and is a strong indicator or lending risk. As a result, high utilisation hurts credit scores and can cause lenders to be reluctant to extend additional credit.

Bad Credit Loans from Evolution Money

At Evolution Money, we offer specifically designed bad credit loans for customers with a ‘less than perfect’ credit score or who may have been refused a secured loan by lenders in the past.

At Evolution Money, we understand how frustrating and challenging applying for loans can be, especially if you have a bad credit score, and strive to say ‘yes’ to our secured loan applicants by considering individual circumstances rather than just automated credit checks.

This means that even with a bad credit score, we may be able to offer you a secured loan amount from £5,000 to £50,000. Our loans can be used for a wide range of purposes, including adding value to your home, financing a new car, taking a once-in-a-lifetime holiday, or consolidating any previous debts.

Choose a lending term to suit you, from 12 months to 20 years, with competitive rates of interest.

To be eligible for a secured bad credit loan, you must match the following criteria:

  • Be aged 21 or over
  • Be a Homeowner
  • Be a UK Resident
  • Be able to make the necessary repayments from your regular income

Please note, we carry out affordability checks on all loan applicants. It’s best to consider all your borrowing options before committing to a secured loan as failure to make your repayments in-full or on-time can result in more severe financial issues and the potential repossession of your home.

Apply online for a bad credit loan from Evolution Money today with our straightforward loans process and receive a no-obligation quote that won’t negatively affect your credit score. Or, to find out more information on our borrowing options and how we can help you to take simple steps to a better credit score, call 0161 814 9158  to speak to one of our friendly loan advisors.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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