In the fluctuating financial landscape we find ourselves in, concerns about credit scores loom large, particularly with popular UK direct lender, Everyday Loans. Amidst life’s financial challenges, Everyday Loans stands out as a go-to solution for many, offering a ‘straightforward way to borrow money’ tailored for individuals with less-than-perfect credit scores.
Everyday Loans, regulated by the Financial Conduct Authority, offers loans ranging from £1,000 to £15,000, repayable over one to five years. As a direct lender, it distinguishes itself from brokers, eliminating application fees and simplifying the process with online applications and quick decisions.
But, the burning question persists: Does opting for an Everyday Loan impact your credit score?
Understanding Credit Scores:
When seeking financial products like loans or mortgages, your credit score becomes a critical factor. Institutions assess the risk of default based on your credit history, often relying on credit reporting agencies such as Experian, TransUnion, and Equifax. Your credit score plays a pivotal role in determining your access to traditional financing options.
The Three Credit Reporting Agencies:
While credit ratings may vary among agencies, it’s essential to know your score before applying for loans. You have the legal right to access your credit reports, and several free apps can provide this information. Regular checks help ensure accuracy and prevent erroneous data from affecting loan applications.
Everyday Loans and Credit Scores:
Everyday Loans’ appeal lies in its commitment to understanding individuals beyond their credit scores. While traditional ‘hard’ credit searches can impact your score, Everyday Loans often conducts ‘soft’ searches, which don’t leave a lasting mark. Importantly, requesting your own credit report, as suggested earlier, falls under the category of a ‘soft’ inquiry, with no adverse impact on your credit score.
Improving Your Credit Score:
Contrary to concerns, an Everyday Loan, if managed responsibly, may not negatively impact your credit score. Timely repayments can contribute to a positive credit history, potentially enhancing your creditworthiness over time. Keeping up with repayments is crucial, as missed payments may result in a default notation on your credit file.
Additional Benefits of Everyday Loans:
Apart from credit considerations, Everyday Loans offers notable advantages. As a direct lender, they eliminate application fees and simplify the process with quick online decisions. Whether you’re a tenant, homeowner, or living with parents, Everyday Loans caters to diverse financial needs. Their customer service is geared towards assisting individuals with challenging credit histories, emphasizing a holistic approach beyond numerical credit scores.
Looking Ahead:
Everyday Loans remains a viable option for those facing challenges securing loans from traditional banks due to credit histories. As we navigate the complexities of personal finance, responsible use of lending options can pave the way for financial freedom. If you find yourself in difficulties with repayments, Debt Movement stands ready to assist. Request a free callback and embark on a journey towards financial stability in the dynamic financial landscape of 2024.
At Debt Movement we provide professional debt guidance and solutions that help you move out of debt. We offer non-judgemental financial guidance to relieve the burden of financial strain and offer support on your journey to financial freedom. Request a free call back today.
