How credit can help you con­trol fi­nances

Macclesfield Express - - SPORT -

IF you’re look­ing for a loan, new data re­leased this month could prove in­ter­est­ing read­ing.

Free­dom Fi­nance has re­vealed that debt con­sol­i­da­tion re­mains the pri­mary rea­son that peo­ple ap­ply for a long-term loan, fol­lowed closely by home im­prove­ments.

The av­er­age suc­cess­ful loan ap­pli­ca­tion to­tals £11,612 and if you live in Manch­ester you are in with a good chance of hav­ing that ap­pli­ca­tion ac­cepted.

Jeff Poole, man­ag­ing di­rec­tor of Free­dom Con­sumer Fi­nance, said: “These fig­ures are a clear in­di­ca­tion of the im­por­tant role that credit plays in the UK econ­omy, with sev­eral thou­sand peo­ple each year tak­ing out a loan in or­der to fund the purchase of a car, im­prove their homes or most dis­tinctly, to stream­line their fi­nances.

“Many view debt con­sol­i­da­tion as one of the best and most prac­ti­cal ways to han­dle their monthly loan re­pay­ments, which can of­ten get con­fus­ing when deal­ing with var­i­ous loans from mul­ti­ple lenders.

“By con­sol­i­dat­ing debts it en­ables con­sumers to have one sin­gle re­pay­ment.

“As con­sumers be­come more fi­nan­cially savvy, it is re­ally pos­i­tive to see many of them take con­trol of their bud­get­ing, which in turn can re­duce over­all re­pay­ments and im­prove their credit rat­ing.”

How­ever, when it comes to un­se­cured loans con­sumers need to be mind­ful that many of the top rates ad­ver­tised for their cho­sen loan are only avail­able to those with per­fect credit scores.

Jeff said: “In re­al­ity, there are very few ‘per­fect bor­row­ers’.

“A bet­ter un­der­stand­ing of lenders’ cri­te­ria should help to give ap­pli­cants a clearer pic­ture of what type of loan they’re likely to be ac­cepted for and at what rate.

“Bor­row­ers also need to be made aware of the risks as­so­ci­ated with shop­ping around on­line for loans, as these searches of­ten cre­ate a dig­i­tal foot­print that can have a neg­a­tive im­pact on their credit scores.

“En­gag­ing with com­pa­nies that use ‘soft search’ tech­nol­ogy is a far bet­ter way to shop for loans safely, since they do not store this type of in­for­ma­tion.

“As a re­sult bor­row­ers are able to get the best rate pos­si­ble for their par­tic­u­lar sit­u­a­tion, both now and in the fu­ture.”

Jeff Poole

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