Procuring a loan whilst having bad credit can be a nightmarish experience. To avoid the unpleasantness, it is imperative to choose a lender who is transparent about fees and rates, has flexible terms and will consider you as more than just a credit score. The things to stay clear off are predatory lenders, scams which have the potential to pull you into a vortex of debt.
One of the contributing factors to a bad credit score is having excessive debt and other bad financial habits. There are many reasons as to why one avails a loan, but one unexpected benefit is to improve your credit score (upon adhering to the repayment terms and guidelines). Traditional lenders may reject your loan application if you have a history of missed payments.
What does bad credit mean to lenders:
Banks perceive you as unable to repay the loan
As a means to diminish their risk, you might be slated for a lower amount of loan eligibility
More collateral might be expected from a borrower with bad credit to be eligible
The interest rates offered are higher than those with average and above credit
Most traditional lenders do not consider loan applications of a certain credit score and below
The qualifications required to avail a personal loan, in spite of bad credit, is quite simple. It requires that you are a legal US citizen of age 18 and above, basic information such as work and residential contact address and bank account details.
As an alternative to personal loans, unsecured online loans are designed to help you with short-term financial assistance. The lenders offering these loans do not require you to have a perfect credit score. Some features are fast approval and funding, large lender network, and the loan can be used for any purpose. Other than having a bad credit, the APR deciding factors are many the lender, which state you live in, age, income, having a valid checking account, duration of the loan, late payment penalties, loan renewal actions and various other factors. APR’s also vary based on the information provided by you on the application. APR and the finance charge are not one and the same. The latter will be disclosed later on in the loan request process.
Before agreeing to a loan, especially a bad credit personal loan, please review the information provided by the lender ( information on loan details, APR, loan term, fees, penalties). Always shop around for the loan that best fits you and your pocket.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.