Improving Your Credit History with Short Term Loans

Getting onto the property ladder for the first time is not an easy step, and consequently people are always looking for a quick leg up. Taking a short cut when it comes to an investment of this size is not advisable, but that doesn't mean that first time buyers should not look around for other avenues into the housing market. There are a number of ways to help you improve your credit history, and increase your chances of getting a mortgage for the first time.

Improving Your Credit History with Short Term Loans

It's not something many people think about before they come to buy a home for the first time, but the majority of first time buyers in recent years have had almost no credit history whatsoever. For this reason it is becoming increasingly difficult for first time buyers to get a mortgage, as banks simply do not want to lend to people who have no proven track record of paying money back.

Short term loans are not a solution to this problem, but they can provide a little boost. That is not to say that taking out a payday loan from a provider like Wonga is, by any stretch, an acceptable way to pay for a house, or even part of it. Perhaps one day a pay day loan may be required to help pay off a mortgage one month, but it is not the purpose of this article to detail that. Rather, by taking out even a small number of short term loans and paying them back on time, banks are able to see that the person they're asked to lend to is capable of paying back the money they are given.

1 comments:

  1. Having to much debt can hurt your credit and using short term loans to pay off your debt and rebuild your credit may be a viable option for you.

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