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Why your credit score is important
To banks, mortgage brokers, auto loan companies and creditors, one’s credit score determines whether it’s risky or safe to loan money to that person. This number, ranging between 300 and 850, is a borrower’s gateway to a nicer home, a more reliable car, a vacation and more purchasing power. It’s easy to feel as though the walls are closing with bad credit looming overhead.
Can Debt Settlement Help?
There are many roads that lead to poor credit scores. Missing monthly bill payments is one of the quickest ways to drop a credit score. This accounts for 35% of one’s total credit score. Racking up credit card totals (higher than 30% of the credit limit) is the second biggest factor working against borrowers. Other factors that lower a borrower’s score include not having enough credit (15%) and not having a diverse credit portfolio (15%).
A debt settlement company can help negotiate lower payments, when late fees and collection costs have escalated to unfathomable levels. They’ll call all the individual creditors, which will put a stop to aggressive collection calls, providing some relief for the debtor. Once a reasonable settlement is reached, the debtor will pay reduced, more affordable monthly payments until the debt is gone. In some cases, debts may be consolidated into one monthly payment to make life easier.
While debt settlement makes life seem more manageable, there are many things a borrowers can do themselves to improve credit scores even more. A diligent borrower will order a free copy of his or her annual credit report from one of the three major credit bureaus: TransUnion, Experian or Equifax. Once the copy is sent, the report can be scrutinized for any inaccuracies. Last year, over 70 million Americans reported inaccurate credit scores. Once an inaccuracy is reported, the bureau will follow up with the creditors. If the creditors don’t respond, the blemish is immediately removed from the report – just that simple! With so many inquiries coming in, this frequently happens, and borrowers will see an instant credit score increase, sometimes by as much as 100 points.
Are Payday Loans Safe?
There are many reasons why someone may need to take out a payday loan. Unlike traditional bank loans, payday loan establishments do not run a credit check before loaning out the money. All they require is a bank account, a paystub or benefits statement, photo ID and a piece of mail with an address on it to verify residence. Often these loans are approved right away. They’re designed for people who run into unexpected car trouble, medical expenses or bills due before payday. Often people know they have the money coming in but simply need the funds today to make a deadline.
If the borrower takes out the bare minimum amount and thinks of it as an emergency situation loan that needs to be paid back on the very next payday, rather than free credit, then payday loans are perfectly safe. Borrowers will pay a little extra for the convenience of instant cash – usually 15% of the total borrowed (so $15 for $100 borrowed). The money will be automatically taken from the borrower’s bank account two weeks later on payday, unless otherwise deferred. It should be restated: Payday loans are not for the reckless and irresponsible. If a borrower tries to take the money and run, the penalties can be rather unforgiving.
Who Gives Out Bad Credit Loans?
There are many ways to get money even if one’s credit is poor. For people who need short-term emergency funds, there are payday loans and cash advance operations, which do not require a credit check at all. The borrower will pay 15% more but will have the money instantly, rather than waiting for checks to clear or payday to arrive.
For people who require assistance with long-term purchases like auto loans, school loans or home loans, there are other businesses specializing in these niches. Borrowers should exercise caution and check with the Better Business Bureau before getting involved with these companies, as many unscrupulous fly-by-night operations open up, leaving the poor high and dry.
For people who just want better credit, a personal installment loan that can definitely be paid back on-time each month will boost one’s score. For example, there are pre-pay credit/debit cards offered by VISA that do just that. With this deal, borrowers will pay into a debit account and their payments will be reported to credit bureaus to add positive information, thereby improving one’s credit history and score.
Where to Get Bad Credit Loans:
Business Name: National Payday
Phone Number: 877-778-8006
Business Name: 90 Day Loans
Phone Number: 800-719-7141
Business Name: Money Now USA
Phone Number: 877-510-5000
Business Name: Mortgage Lenders Plus
Phone Number: 866-733-4599
Business Name: Auto Credit Express
Phone Number: 888-535-2277
Business Name: Check Cashing Store Financial (Florida)
Phone Number: 954-938-3550
Business Name: Money Mart (Ohio)
Phone Number: 217- 451-2274
Business Name: Pierre Money Mart North (Washington)
Phone Number: 425-775-4254
Related posts:
- Buying a Home with a Low Credit Score
- How To Achieve A Good Credit Report Score
- Demystifying Your Credit Score
- What is FICO Credit Score
- Keeping On Course To Improve Your Credit Report Score