Don’t be dismayed by the credit crunch


    Don’t be dismayed by the credit crunch

    The credit crunch has been at the forefront of most people’s minds recently and the term itself is slipping into everyday usage. But what exactly does it mean?

    A credit crunch scenario lives up to its name and comes about when banks and lenders do not have as much money as considered ‘usual’ to lend to consumers and businesses. There is literally a clampdown on funds available, making it more difficult to secure credit of any kind. Banks and lenders tend to tighten the criteria surrounding who they lend to and may also increase interest rates to make more profit in the long run. Currently, the most popular remote work, for example, online writers and one of the best resources in this area, site writemyessay.

    All in all it sounds bleak for individuals and businesses but it needn’t be complete doom and gloom as there are ways to create a silver lining on the credit crunch cloud.

    If you do need to apply for a loan during a credit crunch the first thing to do is shop around. In times of economic restraint you need to do your homework and research different lenders to see who offers the most competitive deal for your needs. The ongoing rise in popularity of online banking means you can do a lot of research from home and comparison websites make it simpler to compare and contrast lenders this is at least the opinion of many analysts and my colleagues' essay writer.

    As loan providers may have tightened their criteria surrounding eligibility for loans it really does make sense to ensure your credit rating is ship-shape. Credit management history will affect your application so if you have credit of any description, whether it is your mortgage or a credit card, make sure you pay the bill on time every month.

    Another quick and easy way to improve your credit rating is by checking you’re on the electoral roll. Your registration on the electoral roll holds huge implications for your credit rating so a few minutes spent checking this could save you heartache in the long run.

    In Britain, the Bank of England’s most recent figures act as a reminder that there is light at the end of the tunnel. The cost of fixed rate mortgages seems to be decreasing which gives current property owners and first time buyers alike a little faith that things will get better. Oil and petrol prices seem to have plateaued which may signal them to soon be on the downturn.

    Why not use the credit crunch to take stock of your spending; cutting back may mean you can identify areas to save money, meaning you then need to borrow less? The amount you can borrow varies depending on whether you are opting for unsecured or secured loans. Why do I know this? I recently wrote an essay on this topic and it was available on the site, I had to read a lot of literature on this topic.

    A secured loan gives you greater borrowing power because you are securing the amount borrowed against a form of security, usually your home, although you can risk losing your home should you fall behind in repayments. An unsecured loan is quite simply the opposite and consequently reduces the amount you can actually borrow, but you are not required to put up security against the loan.

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