Monday 29 October 2012

What is bad credit?


Loan providers in the Uk all work differently when it comes to their credit 'score' or 'rating' that they use to decide whether to accept you for a loan. They will use not only the public information available to them via the main credit bureaus like Experian or Equifax but a score card based on their attitude to lending and the risk they are prepared to take. If you have a tarnished credit history then the likelihood is that most mainstream lenders will turn you down when you apply to borrow money leading people to question their credit status.

There is no blacklist file as often suggested that people find themselves on however clearly having 'Bad  Credit' will impact your ability to borrow money, on a mortgage or personal loan. 

If you fail to keep to the terms of previous or existing credit agreement then information about this will appear on your credit file. For example, making credit card or loan repayments late, or missing them altogether, will impede your ability to borrow in future.

If you declared bankrupt, entering into an Individual Voluntary Arrangement (IVA) or having a County Court Judgement (CCJ) registered against you this will badly affect your credit rating and the choice of finance options available to you.

To a lesser degree your credit file can be affected if you just make the minimum repayment on your credit card each month, as it may lead lenders to assume you are struggling to clear your debts.

Other factors that can influence a lenders decision can be
  1.  home ownership status - lenders often prefer to lend to home owners rather than tenants and younger customers living with parents.
  2.  Employment - Being employed rather than self employed is preferred by some lenders. Also having a stable job history with not too many changes will mean you could be scored more highly.
  3. Other credit balances available - If you have unused credit cards then consider closing the account as having large unused credit and potential to borrow may be seen as a potential risk to new lenders. 
  4. Pay all bills on time - more and more businesses and agencies including council tax could share your payment history
  5. Register on the voters roll - It doesn't mean you have to vote! It could certainly help though and means you are traceable for specific lenders

If you have bad credit then the types of loan available are likely to be restricted to specialist providers who will look to mitigate their risk and exposure whilst charging in some cases a higher rate of interest than the big banks for example who as alluded to above are looking to cherry pick the type of customer they lend to.

There are for example loans that have no full credit check or guarantor loans that are assessed mainly on the strength of a personal guarantor that will be stipulated. A No credit check loan is available to customers who can provide a guarantor so long as they themselves are not bankrupt or in an IVA and the guarantor has a clean credit history, an income and is a home owner.

Secured loans or home loans are another way that lenders will mitigate their exposure but of course need to be considered very carefully. Like a mortgage you are borrowing money against the value and security of your property so naturally you will want to be confident in your ability to service the loan being that your home could be at risk if payments aren't maintained.

Secured loans are also available on personal assets such as art at higher interest rates but no credit check. Sometimes referred to as posh pawnbroking they are loans secured against an agreed valuable asset that is stored securely and returned to you once the loan has been settled.

To find out more visit us at Money Solutions Uk




Friday 12 October 2012

Unsecured Business Loans


Unsecured Business Loans £5k - £100k


Looking to expand? Need some working capital? Buying some machinery, equipment or vehicles? 
We can find you unsecured and secured business finance quickly. No business plans, forecasts or lengthy applications needed. 

We are pleased to announce we now have access to an innovative provider of business loans from £5,000 to £500,000. Simple, quick and flexible, this provider connects you with multiple individuals who want to lend money at competitive rates.
Loans can be for any purpose (except property development): unsecured loans from £5,000 - £100,000, secured loans from £100,000 - £500,000 and large asset finance loans from £50,000 - £500,000

Highly competitive rates – from 6.4% AER
initial Pre-Approval in seconds
Fixed rate, monthly repayment loans 
over 1, 3 or 5 years
No application fees – only pay on acceptance
No early repayment charges, settle any time
No large business plans or forecasts needed, just a short case for the funds required.



What can the loan be used for?
•Working capital
•Asset purchase
•Liability payments
•Expansion and growth
•Any purpose 

Does my business qualify?
Is your business a Limited Company or a Limited Liability Partnership?
Does your company have at least two years of filed accounts with Companies House?
Is your business stable and creditworthy?
Do you have a UK resident Director?

If YES to the above, apply for an unsecured business loan today! 

Click HERE To Enquire

Thursday 4 October 2012

What is a consignment loan?


consignment loan
Consignment loans are specially tailored for clients looking to sell personal assets at auction or through private treaty.
If you are waiting for the appropriate auction or buyer then naturally this can involve a lengthy wait until you are able to release the liquid funds tied up in your vauable asset.


A consignment loan enables you to access up to 70% of the estimated sale price in advance of the sale, allowing you to get your hands on your funds quickly to put to use maximising other personal or business opportunities, while waiting for the sale to take place.
So to reiterate the details, a consignment loan is a loan secured against personal valuable assets in advance of their managed sale at auction or through private treaty. It means an individual can borrow up to 70% of the asset value whilst the lender manages the sale of the assets on their behalf. 
Once the asset has been sold the customer will receive the balance, after the lender has recouped the cost of the loan, any outstanding interest plus any sale transaction fees.



Consignment loans can be arranged against a range of high-value assets such as fine art, antiques, prestige & classic cars, diamond jewellery, luxury watches, fine wine and many more subject to underwriter approval. 

So long as the asset has a minimum value of £50,000 it is possible to borrow up to £1,000,000 at a maximum loan to value of 70% of the estimated sale price. 


The difference therefore between this process and a standard personal asset loan is that a consignment loan is in effect a managed sale with money provided in advance of the transaction taking place whereas a personal asset loan allows you to borrow money against  your assets without selling them. At the end of the loan period your assets are returned to you once the loan and interest due is settled.

Click HERE for more details on arranging a consignment loan