Tag Archives: bad credit score
Quick Fix to Bad Credit Score
A bad credit score is one thing that financially independent individuals should avoid. This is detrimental in many aspects of their financial lives. For instance, a bad credit score can void them of good jobs. This may sound unbelievable but indeed it is true. Many employers seek out those potential employees who do not have uncontrollable debt. This is because a bad debt can rid a person of his concentration. At work, an unfocused employee can cost losses in profits. This person would not be able to perform well thus possibly dragging the company down with him.
Another bad result of an undesirable credit score is disapproval of loans. Loans are critical for building ones life. A person needs loans for buying his own house. He needs it for owning a car, putting up a business and more. But with a bad score, all of his goals may not come true in a smooth manner. He can get approved on such loans only when his score is above 700.
A bad credit score is brought on by unpaid bills or late payments. This is usually the case in a massive credit card debt. People apply credit cards promotions and get hooked on spending. Before they know it, they are in too much debt. A lot of people disregard their pending payments. They only get surprised when they apply for a loan and their credit reports are shown.
However, there is a quick fix they can do to change their fate on loans. Note that credit bureaus have a method of scoring. One way is by checking a persons recent payment history. It means that what matters in their scoring is the recent payment activity of a person. Therefore, an individual can up his credit score by making recent on time payments.
For his credit card bills, he can opt for credit card balance transfer. When all of his credit card debt is in one place, he can make efforts to pay on time. It wont be as hard this time because of only one bill and one interest rate. Utility bills also matter so he should always look out for the deadline. He should pay before the due date just to make sure. Also he can cut off some of his unnecessary spending. This way he would have extra money for the payments.
Doing this for at least six months can increase his chances on a good credit score. After which he can then take on some loans.
Bad Credit Loans: Improve Your Credit Score
Bad credit is becoming a common problem now days. The people having bad credit are not able to get financial help easily. There are several reasons for the bankruptcy, these includes CCJs, IVAs, Defaults, Arrears, people who have previously filled bankruptcy and Late repayments. These profiles add a tag of bad credit holder with your name.
The credit history of a person is calculated on the basis of credit score that is assigned to each and every citizen of UK by the credit reporting companies. This credit score is based on the liabilities of a person. A score of below 600 is considered to be as bad credit score. There are three credit rating organizations in UK that provide free credit score details annually: Experian, Equifax and TransUnion.
Earlier it was really tough to survive with the bad credit score as no one was ready to lend money to these people. But now lenders are ready to lend money in form of bad credit loans to the people who suffer from this problem. All you need to do is to calculate the amount of money required by you and then choose a lender that suits to your conditions. There is only one thing that hurts the borrowers and that is high rate of interest.
There are two variations of these loans that are available to the borrowers; these are secured and unsecured Bad Credit Loans. The secured loans need a collateral deposit to be placed with the lender as a security. There isnt any such type of security deposit that should be kept with the lender in the unsecured loans. Bad credit is a problem but there are some advantages of these bad credit score loans. These loans are now available at a lower rate of interest as compared to the previous times. If you are paying off these loans on time, you wont suffer from credit problem any longer. These loans help to correct your credit score. Also these loans can be taken for any purpose by the borrower and the lender wont say anything regarding the need.