Understand Your Credit Options

Understand Your Credit Options.. With credit and loans (in one form or another) almost being a necessity in today's society, it's often hard to know which products are most suitable for which situations. On top of that your credit history plays a massive part in deciding whether you will be accepted for a given type of credit. Here we explore the options available, show which purchases they're most suited to and provide the 'range' your credit rating will need to be in to have a chance of application success. Guarantor Loans Personal Loans UP TO £5K Suited For: UP TO £25K Medium to Large Purchases (e.g. car, washing machine) Suited For: Holiday Large Purchases (e.g. car, home improvements) Medium Purchases (e.g. washing machine) Holiday 48%-79% APR Your Credit: 7%-30% APR Your Credit: POOR FAIR EXCELLENT POOR FAIR EXCELLENT |Payday Loans Secured Loans UP TO £1,000 Suited For: UP TO £100K+ Suited For: Urgent Emergency Purchases (e.g. Fix Broken. Washing Machine). Short Term Cash Boost Until Payday- Large Purchases (e.g. home extension, rennovation) 2000%+ APR Your Credit: 3%-18% APR Your Credit: POOR FAIR EXCELLENT POOR FAIR EXCELLENT Credit/Store Card Log Book Loans UP TO £15K+ Suited For: UP TO £3K Frequent Retail Purchases When Necessary. Emergencies when Short of Cash. Medium Purchase to Spread out Cost. Suited For: Urgent Emergency Purchases (e.g. Home Repair). Medium Essential Purchases (eg. White goods) 6%-50% APR Your Credit: 450%+ APR Your Credit: POOR FAIR EXCELLENT POOR FAIR EXCELLENT Hire Purchase Catalogue Account UP TO £25K+ Suited For: UP TO £5K+ Medium Purchases (to Spread Cost) New Car (if Low rates are available) Suited For: Medium Purchase to Spread out Cost. Retail Essentials (e.g. Clothing) if repaid in interest free periods. 0%-60% APR Your Credit: 20%-40% APR Your Credit: POOR FAIR EXCELLENT POOR FAIR EXCELLENT Debt Solutions Which is right for you? If you're currently in debt and experiencing financial difficulty then a more suitable option may be a debt solution such as an IVA or Debt Management Plan. You should consider your situation carefully and choose a product which is right for your needs. Make sure you can afford the repayments and where possible, try and go for the option with the lowest rate of interest. If you're unsure then you should speak to a financial advisor about your situation. If your credit history isn't the best in the world, then there's probably little point in applying for the lowest rate personal loan on the market (chances are you'll need a near perfect credit history). Instead, try applying for a product more suited for your credit history - you can use equifax.co.uk a l experian.co.uk check yours. GET ADVICE! It's also worth noting that every credit application you make may leave a mark on your credit record. If you make many applications in a short space of time, this can have a detrimental effect on your credit rating - so try not to apply everywhere willy nilly! Disclaimer: All figures are given as a rough guide based on a market search Aug 2012 and no guarantee is made as to their current validity. You should always seek professional advice before entering into a credit ogreement. Nothing here should be taken as professional or financial advice, The power to act on any of this information lies solely with you. GLCMoney Saving blog GuarantorLoans Company