A Beginner’s Guide To Bad Credit: What Does Your Credit Rating Say About You?
A Beginner’s Guide To Bad Credit: What Does Your Credit Rating Say About You?
If you’ve ever experienced financial problems in the past then the chances are that any mistakes you’ve made (whether you know you’ve made them or not!) will be recorded on your credit record. In many cases, these mistakes will occur as a result of financial problems you may have experienced – but often you can get a bad credit history without really doing anything wrong.
There is HELP!!
The majority of problems that will give you a bad credit record will happen if you have problems managing your finances, you miss a credit card payment, default on your mortgage, declared bankruptcy etc., will definitely show up on your credit. Depending on how you look at it all of these negative things can be turned into positive ones if you work it right.
Other issues can give you bad marks such as wrong information etc. as it does not take much for scores to decrease which is why it is important to stay on them. The fact is that it isn’t just what you do with your money that comes up on your credit rating – it’s how you manage it and see it. You can STILL have a rating that is less than perfect from a lender’s point of view even if you have never had a financial problem before in your life! So, make sure that you know what is on your credit.
Solutions Tips!- Stop Worrying and Just do it!
If you have a less than a perfect credit score, then you look less attractive to lenders when it comes to taking out loans and other forms of finance. The first thing that the majority of lenders will do when you apply for a loan is look at your credit rating( it does not matter how long you have done business with them) and if they don’t like what they see you will be turned down and things could then go from bad to worse in no time. Another factor to consider as well with low scores is to think about the amount of inquiries you are receiving. Some lenders look a little harsh on several inquiries but we will discuss that later.
Lenders
Most lenders will take a better view of bad credit ratings now than in the past and if you find a mainstream lender that won’t take on your situation there are several other lenders that will with possibly higher interest rates. There is now a whole sector of the lending industry that solely specializes in working with consumers with bad credit so there is definitely help out there. BUT, don’t let your situation handicap you as you still need to get those scores up!
One last piece of advice, please don’t let your bad credit rating cause you further financial problems. Research all companies before you decide to do financial business with them as some bad credit specialists have muscled people into the market with high interest rates and deals that are not as good as they could be. There are hundreds of reputable lending sources that you can work with – the key is to find them and compare there to your situation.
Here are a few lenders that could help you in your situation;
Lending Club– Lending Club is a well-established online lender that makes a large volume of loans. It does not publicly share any minimum credit score requirement, but interest rates for the least creditworthy borrowers can be quite high—as much as 35.89% APR
One Main Financial– One Main Financial offers a variety of loans including unsecured personal loans to borrowers with bad credit. There is no minimum credit score required to apply. Interest rates here are also as high as 35.99%, and there’s an origination fee ranging from $30-$150 or 1%-5%, depending on your state. Borrowing minimums and maximums also vary by state but generally range between $1,500 and $20,000.
Avant- Avant is an online lender that promises quick funding for personal loans. Avant does not have a minimum credit score requirement and everybody is welcome to apply. However, those with credit scores above 600 are more likely to get approved and may qualify for lower interest rates. Avant may charge an administration fee of 4.75%, and the highest APR is currently 35.99%.
Remember, your key aim here is to get the lowest interest rates and the fairest deals you can working with what you bring to the table – after all, you don’t want to make a bad situation worse!
