CAN I GET A LOAN HAVING A BAD CREDIT HISTORY?
Bad credit can make it very difficult to obtain certain forms of financing, such as vehicle loans and credit cards. However, this will not prevent a person from obtaining a small and online personal loan.
It is for this reason that it is important to know whether or not one is reported to the risk centers.
Tips if I have a bad credit history
If you need financing, a reported online personal credit can provide you with the funds you are looking for, while helping you repair bad credit along the way. Here are some tips to get a loan if you have a bad credit history:
Verify your credit score
A strong credit score gives you a better chance of qualifying for a personal loan and obtaining a lower interest rate. Evaluate your creditworthiness by checking your free credit score. In general, scores are classified into the following categories:
720 and higher: Excellent credit
690-719: Good credit
630-689: Fair or average credit
300-629: Bad Credit
Before applying, do your best to improve your score. The most important factors that affect your credit score are timely payments and the amount of credit you use in relation to credit limits.
Get prequalified for a loan
Check with online loan companies to see if you prequalify for a loan. Many lenders perform a quick credit check during pre-qualification that does not affect your credit score.
During the prequalification process, you may be asked for this information:
- Monthly debt obligations (rent, student loans, etc.)
- Employer name, work address and phone number
- Address, email, phone number
What can you do that you don’t qualify for a loan?
In addition to a low credit score, the reasons for refusing a credit include:
- Very low income
- Little or no work history
- A high debt / income ratio; Above 80% is considered very poor
- Too many recent credit investigations, such as credit card applications
Compare prices and costs of personal loans
Compare the amounts, monthly payments and interest rates. Play with the simulator and see when it will be more convenient to make your payments, what discounts apply if you pay in advance and other additional costs and benefits.