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.
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