Build Your Credit with a £500 Loan
If you need to start building your credit score, obtaining a £500 loan can definitely help. When you pay back the money you borrow on time, you will see a marked improvement in your credit as a whole. In fact, this is one of the most common methods that people use when it comes to boosting their credit. There are, however, a number of things that you will need to consider before making any final decisions.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Why Should I Focus on Improving My Credit?
There are lots of different reasons why it is crucial that you make an effort to improve your credit as much as possible and borrowing money fast is a great way to do that. It is important that you review some of these reasons before you decide to do anything at all.
- Lower interest rates: The better your credit is, the easier it will be to get a better deal on your loans. This means a lower credit score, so you won’t have to pay as much for your loans as a whole. It will ultimately save you hundreds or even thousands of dollars throughout your life.
- Better job prospects: These days the state of a person’s credit can have a big impact on their job prospects. If your credit is still in pretty bad shape, you might have difficulty with getting hired by a certain company.
- Easier time finding a good place to live: If you are going to rent a flat, you can expect the landlord to run a credit check. Your application could be denied, depending on the place and just how bad your credit is. Improving your credit rating means that you will have more and better options for living accommodations.
See What Your Credit is Like Now
Before you get your loan, you will need to see what your credit rating is like right now. This way you will be able to see how much it has improved once you pay off what you owe. It will also give you the opportunity to look for mistakes on your report, which is crucial as well.
Getting the Best Possible Loan Deal
When you are looking for the best loan to improve your credit, you will find that brokers like Boutell can be incredibly helpful. This type of quality service will make it very easy to get an amazing deal on the loan you need. With such a wide range of lenders out there to choose from, you’ll want to get all of the assistance you can. You will be able to find the right company to get your funds from this way.
What is the Fastest Way to Build Credit with a Loan?
Payday loans offer the fastest way to improve your credit by far. These loans are given out by private lending companies, and they are easy to get approved for. While approval cannot be guaranteed, the standards are far lower than with a bank. One of the reasons that so many people use these loans to improve their credit is because you can get them quick. You could get approved for a payday loan and receive your funds within a single business day. The two week term that is associated with these loans means that you can start improving your credit quickly.
How Soon Will I Notice Results?
You should notice a significant improvement in your credit rating within just days of paying back your £200 loan. Assuming you have paid it off on time, you should see your score increase by at least at least ten points or so. In fact, you might notice this improvement the next day.
Tips for Using a Loan to Improve Your Credit
There are a number of tips that you should follow when using a £500 loan to build your credit, such as:
- Choose a short term: Make sure that you go with a shorter term for your loan so that you can start building your credit as soon as possible. This will also keep you from having to pay more interest than necessary.
- Pay off the entire loan on time: The only way that you are going to boost your credit score with a loan is by paying it off in full by the due date. Make sure that you have this date circled on your calendar so you don’t forget. It is a good idea to have automatic repayment set up with the lender.
- Only borrow what you need: If you only need to borrow £500, you shouldn’t borrow any more. This will help to keep you from paying more than you have to, as you will be charged interest on whatever you borrow.
- Don’t settle for just any lender: A good lender can go a long way towards helping you to build your credit. This is another reason why you should choose a reputable credit broker like Boutell.
- Be careful with the application: You need to make a point of filling out your loan application very carefully. It is crucial that you do not make any mistakes that could delay this process. The sooner you fill out your application, the sooner you will be able to get your loan.
- Don’t submit too many applications: It’s also important that you do not submit a lot of applications within a very short span of time. This will only serve to hurt your credit, so you need to keep that in mind. Using the right credit broker can help you avoid this issue entirely.
Who Can Benefit from a £500 Loan?
Many different people can benefit from getting a cash loan of this size. You will find that £500 can go a long way towards helping you catch up with bills or even finance a family holiday trip. You’ll have a nearly endless number of options when it comes to how you spend this money. If you borrow from a private lender, you can use it however you want. There won’t be any questions that you will have to answer before you can get approved.
College students often take out small to medium size loans like these to cover the cost of everything from rent to text books for classes. An online loan from a private company can make life much more comfortable while in school.
Anyone who is struggling with their bills and needs to catch up should also keep this option in mind. Lots of people have used these smaller loans as a means of avoiding late fees, which can stack up very quickly. The last thing you want is to get behind with any of your bills, as you will have to deal with some fairly serious consequences. Late payments mean that your credit will be negatively impacted, which is the last thing you want.
Remember to Check Your Credit Afterwards
You’ll need to make a point of checking your credit reports and scores a few days after you pay back your loan. Make sure that you get a copy of your credit report from each of the three major bureaus. This is something that a lot of people forget to do, but it is important. You also have more than one score, so you must keep that in mind as well. It shouldn’t take more than two days to notice the improvement with your credit. You will likely not have the same number for each of your scores, but they should each be higher than before.
The truth is that building one’s credit up isn’t nearly as difficult as it might seem. Getting even a small short term loan can do wonders for boosting your ratings. This in turn will make it much easier for you to save money on future loans, which is always a good thing.