Need Unsecured Loans Bad Credit
Rating or Not?
Do you need a loan? Do you need money for
vacation, home repairs, to get a new car, pay tuition,
or get caught up on some bills? Does every major loan
company turn you down? Is your credit rating causing
you to get turned down by every creditor you apply too?
Do you even know your credit rating or how loans work?
This knowledge can help your financial future more than
you realize. Learning all about the credit game can
help you improve your credit score and get loans in
Credit Frequently Asked Questions:
What is considered a good credit score?
1) Above 730 Excellent credit.
2) 700-729 Good credit.
3) 670-699 Lender will take a closer look at your file.
4) 585-669 Higher risk; you will not be eligible for the
best rates and products. Credit products may not be
5) Below 585 Credit options will be limited or not available.
Lender will need to consider other information in your
What determines my score?
Late payments, delinquencies, bankruptcies: After 30
days late, your delinquency is reported to the credit
Outstanding debt: The more debt you have, the less likely
someone will give you more.
Length of credit history: The older your history is
the better chance you have of getting more credit. Creditors
don't want to take a risk on someone with new credit.
Types of credit in use: Some types of credit, including
credit cards, provide you with a credit line greater
than the amount you have already borrowed. The more
credit available, the greater the risk to the lender
since a borrower can easily increase their outstanding
New applications for credit: Frequent credit checks
by lenders may indicate that a borrower is looking to
increase his or her amount of debt. Each time your credit
is checked, your score goes down!
How do I get an unsecured loan with my bad credit score?
The first thing you need to do is improve your credit
rating score. You can do this many ways. The most common
way is to get a secured credit card. Your credit limit
is equal to the deposit you put on the card. If you
put $300 on a card then you have $300 in credit. You
charge stuff on the card and pay the bill when it comes
in. Many secured cards will even give you credit limit
increases after 3 consecutive on time payments. They
report your good credit to the credit bureau and this
in turn increases your credit.
Some banks specialize in giving bad credit loans. They
will offer you a small amount of money, sometimes as
low as $50 and charge you a high interest rate. If you
pay it back they increase you available credit the next
time you apply for a loan with them. If you continue
to keep a good track record with them, they will be
more likely to give you a bigger loan when you need
it. They also report to the credit bureau so it improves
your credit rating. That in turn makes it much easier
to get an unsecured loan with a bad credit rating.