Homeowner Loan Company In UK
What is a bad credit loan?
This is a loan for people who have experienced financial difficulty in the past such as late or missed payments; County Court Judgements (CCJs) and Arrears etc. You will be deemed as having ‘bad credit’ and could find it difficult and expensive to get a loan. However, there are sympathetic lenders who will provide you with a loan even if you do have bad credit, hence the term ‘bad credit loan’.
What is a prime lender?
Prime lenders are suitable for people who have an excellent credit history. Prime lenders typically offer the lowest interest rates and the lowest fees for borrowing, subject to you meeting their criteria. If you have late or missed payments on other credit within the last six years, it is unlikely that you will be accepted by a prime lender. If you do get accepted and your credit history is less than perfect, then you will probably pay a few percent more than your contemporaries with an excellent history.
What is an APR?
APR is short for 'Annual Percentage Rate' and it is a legal requirement for lenders to display the APR when advertising interest rates.It shows the true cost of borrowed money on mortgages, loans and credit cards. How it works is that the APR calculation takes into account all the costs associated with the borrowing (such as the basic interest rate, any costs you have to pay and any initial fees).Because lenders calculate APR the same way, it means that you can make significant cost comparisons between products.
What is a credit check?
A credit check is a search carried out by a potential lender to assess your suitability for credit. They will check your credit record to see your current and previous financial history. They can then give you a credit score to see if the way that you manage your finances meets their criteria for lending.
What is a CCJ?
A CCJ actually means County Court Judgement. This is a judgement made in a County Court against someone who is in debt to a third party (an individual or company) or where they have failed to meet the terms of a credit agreement.The Judgement will set an affordable payment plan so that the debtor can repay their debt. CCJ’s are held on public record and will affect the debtor’s chance of getting further credit for up to six years.