What are credit ratings?
When you go for first-time credit or loan from a bank, your credit record is generated with credit score agencies.
What about if I have not taken any loan or credit?
In this situation your credit record will be absent in agency’s database.
How no credit history is valuated for payday loans approvals?
This is not good for loan seekers because a lender has no clue about your past loan transactions. So they may be rejecting your application, despite you fulfill all other criteria.
Is credit record being helpful in getting loan?
Yes, one should take one loan or credit card to initiate credit recording.
What is bad credit?
There are many reasons for the poor credit score. Some of them like.
1. Credit card or loan repayment defaults or late re-payment.
2. CCJ against you.
3. You are a guarantor for some one else and he has not repaid in due time.
4. Bankruptcy, etc.
How to check if my credit score is poor?
From time to time you should check your latest score with different agencies and try to improve it. You can check your score 24/7 online with these agencies free of charges.
What are the impact of bad credit in getting fresh loan?
Every lender has their own calculations for the poor or bad credit score, and they do not accept loan below this ratings. They do not suppose to give reasons about their loan rejection. If some lenders agree to fund, they may charge the higher interest rate and approve a loan for the small sum.
How to get cheaper loan even with bad credit?
You may go with following options to get loans with normal rates:
1. Find one guarantor with the good credit score.
2. If you have your own home or auto, you can put this as collateral. But this is a risky option should be avoided.
3. Convince your lender about your sound financial status with some proofs like bank statements and salary slips.
4. Changing of house frequently also adversely affects your credit so if you are staying for long time in a house will be good proof of stability to show the lender.
5. Changing of house frequently also adversely affects your credit so if you are staying for long time in a house will be good proof of stability to show the lender.
6. Improve your credit score by repaying many outstanding loans with one big personal loan.