When you start a family of your own you start building debt in so many ways - for buying a car, buying a house and so on. In our case, it was worse because we were working at different place, me in Kedah in the north of Malaysia and my wife in Kuala Lumpur. We had to maintain 2 separate houses and we also had our own cars. We also decided to buy an apartment on a loan which we have to repay for 25 years.
This caused a severe strain on our finances. We were fortunate because both of us were working. However, things would suddenly turn up that we had no chance but to borrow money (using our credit cards). Like the time my wife had to go for a Caesarean birth. We decided to go to a private hospital and as you know these places are not free or even cheap. Fortunately our bank credit history was good.
We are still in the process of repaying of our house loan. Thank God! we got rid of both our car when we came to the UK, otherwise we would have been paying for that too.
I am sure many people are in a similar situation and maybe worse. Some of these people come under what is known as a bad credit history. Whenever we apply for a loan, our credit history is reviewed. If you have a bad credit history, you may have to settle for a bad credit loan, which has less favourable terms including higher interest rates. There are several Loans For People With Bad Credit. This includes Bank loans for financing your business and Secured loans for people with bad credit but who have property, among others.
4 comments:
Lenders are becoming more strict in their guidelines for offering loans to those with bad credit. It use to be easy to get a loan or a credit card with bad credit, not in today's market.
Kudos for you and your wife for being able to pass the financial hurdle. Some are not as lucky. People who have loans have succumbed even further down. Good thing there are institutions that help people even with bad history credit
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