Bad Credit Loan Options
To a lot of individuals with bad credit, opting for a loan isn’t exactly a plausible option. Luckily, it can be possible if you know where to look and know precisely what it is that you want. It may seem impossible to get a loan when you have bad credit, but it’s possible!
If you want to be on track with your credit, you have to start right now. Just so you know, it will be more achievable to get a loan than to get approved for a credit card. When you want bad credit loans, here are some pointers:
The lowest interest rate will not be going your way. As a matter of fact, it’s totally off the table. Paying a high interest rate is one of the consequences in rebuilding your credit score.
Steer clear of major banks and lenders. They may be the go-to, but they will almost always reject you. Find those that work specifically with people having bad credit. Have perseverance. Also, always have the patience in improving your credit score. If you can’t get approved even for a bad credit loan, then give it some months to give it another shot.
When bad credit loans are being talked about, there is no magic wand to be used. It needs time. Also, check every option that you have. Look for those that would work best for you. It’s good to hear that it’s guaranteed that you’ll be okay and the loan will be approved, but it doesn’t work that way. You wouldn’t know until you try. Get back on track with your credit standing. This will do you good over the long haul.
Categories: Credit Score Articles Tags: approved, Bad Credit, bad credit loans, give, work
How does the credit score point system actually work?
Question by tak3032: How does the credit score point system actually work?
I want to know how do they determine the credit score point system. I know what is credit and how it works. But I want to know the numbers part like if someone runs your credit report it takes off 2points from your score, another is what if your late on your payment how much does it take off then and if I have a loan for a certain amount does that mean I get a big score or a low score? I have some old accounts (5yrs old) that need to be paid off but if I do pay them off will it really make a difference on my score? Next thing you know I pay them off and then my score only goes up by 4 or 5 points or will I even get a point. What would be the purpose then? At the same time if creditors do look at my report yes it would show paid off but the history would still show that I was delinquent for 5yrs. Whose gonna want to give me a loan any ways? Basically what is the point system and how is it calculated? Let me know so I can start to repair my credit. Much thanks and I appreciate it!!!
Best answer:
Answer by Still reading
You will get a lot of answers about how to work on your credit score. The system is proprietary and held very closely by the company which owns the system–Fair Isaac. Many people with experience with a lot of borrowers have seen specific actions affect individual credit scores. And, they can give you recommendations. But, honestly, the only way to “fix your credit score” permanently is to pay off the bills you owe. Your score may not be immediately impacted, but this action will reflect your earnest attempt to deal fairly with those who have lent you money in good faith. There are no instant fixes, but you have a better story to tell if you can say that you had loans delinquent for 5 years, but when as soon as you were able, you began to pay them off and are now handling your credit responsibly. You’re right in the supposition that no matter how many delinquent accounts you pay off, you won’t see a quick improvement in your score. But, you might find individual lenders willing to take a chance on you. And, once you get some new credit (after paying the old bills) and handle the new credit well, you’ll build your score slowly and steadily back to where you need it to be. It took years to earn a low score; it will take considerable time to prove that you’re a worthy borrower.
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