Save money by improving your credit score

Each year, British households with low credit scores are paying £3.5 billion more on everyday borrowing than they might do if they had a better credit rating, but debt consolidation loans can help to improve their fortunes.

Credit card provider Aqua has found that families who have impaired credit scores spent an extra £1,170 on mobile phone bills, utilities, credit cards and white goods in 2013 due to the higher rates that were offered on account of their history.

Dr John Glen of the Cranfield School of Management wrote the report for Aqua and remarks that `simply put, poor credit is costing households in the UK billions`. He adds that `it`s alarming that often the people who need the most help are the ones who are being charged more for everyday household products and services`.

There are a number of steps you can improve your credit rating, including making sure that you`re on the electoral roll, not applying for more credit if you get rejected from other sources and ensuring that your bills are paid in full and on time.

A debt consolidation loan can help as it can clear existing unsecured debts and leave you with one more manageable payment which should mean you are less likely to go into any arrears on your credit. This could, in time, boost your credit profile by showing potential creditors that you consistently meet the repayments on your new consolidation secured or unsecured loan.

This is just one way which you can explore to get on top of your debts and improve your cashflow with a view to getting a better credit profile. Bear in mind that with a debt consolidation loan, you may end up paying more interest over the course of the loan and if opting for a secured borrowing route such a remortgage or secured loan then you should think carefully before securing other debts against your home.

Find out more about by getting some no-obligation information on our debt consolidation loans by visiting firstchoicefinance.co.uk or calling on 0800 298 3000 or 0333 003 1505 if on a mobile. 

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.