We sometimes think there is no chance for new credit with adverse credit history. You could by now know, that it is much harder to get credit with poor credit history. Even if you get approved for a loan or credit card, you are likely to be offered different conditions, in terms of repayments of interest, this is called risk factor by financial companies. And the lower your credit score is the worse conditions they offer.
Taking this into consideration the above, you need to work on consolidating your existing debt as well as getting a new finance. This is a proven way many many people were determined enough to get rid of their bad credit, because as they will get a better deal, and creditors will see that you are trying to sort out your finances. Therefore you need to apply for a consolidation loan leaving some amount for your original purpose, also. There is no chance the lender won’t get to know your existing financial commitments, so no point lying about it.
You need to make a careful choice, and steer clear from “guaranteed to be accepted” bad credit loans that have a very high interest rate, and can worsen your credit rating. If you can try not to use IVA-s and different easy financial solutions in any way. Do never abuse these options, only apply for them if nothing else works out. They are damaging to your credit file, think about how it would be if you had no chance for credit for the next 5-6 years. If you are thinking about giving up, and signing up for IVA or voluntary bankruptcy, think again.
Request a free credit report from the credit reference agencies. They just recently started to offer these free of charge of charge. Review all the details and find out your exact credit score to realize how creditors will rate you as a customer. Knowing your credit score you can help you determine which products you are likely to get accepted.
You want to choose between the options carefully, read the small print, ensure you have a chance for getting approved before you submit your application, and you can afford it. Applying for more than one product scan swiftly reduce your credit score to a level where you will have no more options to get out of bad credit. Therefore be extremely careful with multiple credit applications.
You don’t necessarily have to do it alone, and in case you lack confidence, you might opt for seeking assistance from a debt counseling company that will explain every single financial option and determine the most suitable one that will not worsen your credit rating and and still give you further finance.