September 5th, 2019
Credit is crucial! In other words, a credit score is ever-present even if we are not always thinking about it. Having poor credit can limit your opportunities ranging from opening new credit lines, purchasing a car, or even renting an apartment. Better credit will allow you to leverage these things without having the initial funds present. Keep your head up though! Luckily there are solutions in the form of online loans for people with bad credit.
Foundations of Credit
The US credit system determines how likely you will be able to repay back a loan if you were given one. A number is given to you. The number ranges as low as 300 and as high as 850. A low number is considered more “risky” in terms of the chances of you paying back. The higher the number, the more “trustworthy” you are considered to be and there is a better chance you will be given a loan.
It’s important to know that missing a car payment, not paying a credit card bill on time, or ignoring an existing loan can lower your credit score and make it harder to borrow money from anyone! There are always alternatives and online loans for people with bad credit. Let’s first talk about how we can build your credit score!
Climbing Out of Bad CreditB
Bad credit can appear to be an endless spiral but there are some practical ways to help improve your score! For example, try to focus on making sure your outstanding loans are paid in a timely fashion and done so on a consistent basis.
- A common misconception about your credit score is that having too many lines of credit open will hurt it. The more areas you have credit open, the better your score appear. That’s not to say you should open lines for the sake of opening them. Similarly that doesn’t mean you should spend so freely, but it helps to diversify your various credit lines. Speed and length of time will help you credit-wise when you pay back these loans.
- Additionally, you can also try playing the waiting game. In many cases, you can improve your credit score by simply having your lines of credit open longer. It is usually not recommended to close credit lines as these credit facilitators like to see a history. The longer you exist with the credit lines out, the higher your score will go up!
Alternative for Bad Credit Loans
Fast loans, bad credit are typically not a good match. Most personal loans, credit card cash advances and pay-day loans will result in extremely high-interest rates and excessive hidden fees. Brigit is a financial wellness app that allows you to gain control of your finances You can borrow up to $250 with no interest or credit checks! That’s correct! Brigit is concerned with improving your score and will not discriminate your past history or your current score.