Can Instalment Loans for Bad Credit Improve Your Credit Rating?
At the same time they do report the activity of the loan across its duration. I did spent some time looking at what Experian were saying on this issue (and also Martin Lewis from Money Saving Expert). It is made clear that repaying on time can have a positive impact on your score, but you should always pay back on time. It is a double-edged sword whereby defaults can get your profile into a right mess and the late fees soon add up. The major problem with shorter term products is of course that it is difficult to repay back a large bulk sum after just a month.
This is where the best instalment loans for bad credit can step in to help! Here, you can spread out the repayments over 3, 6 or even more months that would create a much more manageable repayment structure. Improving your credit rating should also be more effective here since you are making more frequent repayments. These extended products work out much more affordable over longer terms as well. This can be seen in the ranking charts below whereby the daily rates decrease over time. The Oakam Review highlighted that their best rate over the studied 6 month term rounded off to just 0.278% daily when repaying 4-weekly.
This is a great rate when you consider that the average monthly payday rate is 1% daily. Oakam do make updates to your profile as well. It is clear that as we are moving forward into 2014, instalment loans are becoming increasingly popular. This is seen for instance in the launch of FlexCredit from QuickQuid and Satsuma Loans from Provident. Most instalment lenders introduced do cater damaged profiles. We recommend using these, but keeping the amounts borrowed at sensible levels is advised. If you are serious about improving your score then here are some Further Insights on how you can do this. It may take time, but you can get there with some effort.
