Bad credit situation has always been in the discussion. In fact, the finance industry too carries many contradictions on this matter. Especially, when it comes to applying for loan, issues arise. Some lenders say No to poor credit scorers while some are ready to give a chance.
More or less, the issue of borrowing funds with less-than-stellar credit score performance is always an uncertain thing. This creates many questions about the said condition and it is better to get their answers. To make future decisions confident and clear, it is vital to remove the doubts now.
Q – What exactly is considered as poor credit score AND How does that affect loan application?
Very important question. Most of the people are not even aware of what score exactly is considered as the poor credit rating. The answer to this question 561 – 720 rating is considered as poor credit score. Anyone who falls in this category needs to apply for specifically poor credit loan.
Q – One applicant with 561 score and the other with 700. Will lender approve both?
Well, here comes in light the difference of approach varied lenders keep on low credit rating applicants. Yes, both the applicants get approval but may be not always.
You know what, different lenders accept different credit score. For instance – Some may accept you even with a 561 credit score. However, some may have the policy to not to approve less than 650 or 700. You need to find a lender that takes application on a credit score that you have. Many times people miss to get approval due to having no knowledge on this aspect.
Q – What should I search for when I need small funds?
Usually, you get short-term loans during poor credit situation. However, they need to be searched for with precise term, as they are specialised loans. They actually come with several features that are necessary to have a smooth borrowing. For instance – the bad credit loans with no guarantor and no credit check are available online. The direct lenders offer them with no obligation or backing of a guarantor. The no credit check facilitates application procedure without any search footprint. The lender, in place of credit check takes the other information to know the creditworthiness of the applicant. The employment proof, current income proof, address etc. erases the need of credit score perusal.
Q – My credit history is bad but current financial behaviour is good. Do I still need to pay high interest rates?
No, you are surely eligible for a customised deal that calms down the interest rates. However, customisation comes with every sort of bad credit loan. But if your poor credit situation is not consistent but conditional, better relaxation in rates is always possible. If you have bad credit since long, the lender may not look much interested to provide you a lower rate.
Q – Is it really possible to improve credit score though bad credit loan?
Yes, it is. Your timely payments of instalments of loans for bad credit with no guarantor and no broker from direct lender Aonefinance, British Lenders and The Easy Loans make it possible in the UK. Credit rating goes down due to missed repayments, if you pay an obligation on time, it improves. Do the same with the loan repayments. Pay on time and get better in your financial records.
Q – How can I improve my credit score before applying for a loan?
There are several other factors that help you improve score and then get a smooth approval. After all, credit score represents the overall financial behaviour. It is necessary to work on other factors of your financial life, they can certainly help you upgrade.
- Quit from mutual financial commitments if you have split-up with your partner. Their financial behaviour affects your credit score. For instance, if your partner is taking care of a joint bank account after separation, but does not maintain minimum balance, you can get affected.
- Close the unused credit cards, bank accounts, store cards etc. They consume a good space in your credit worthiness.
- Get registered on the electoral roll, it helps the lender find your name and address. It verifies the legal existence of your name in a country and city.
The above questions may cause more curiosity in your mind. Ask it to a financial advisor as soon as possible. Financial decisions should be based on correct information. Stay informed and you can plan a strong escape plan from poor credit situation. Then no loan will be impossible to qualify for you.