Maintaining a good credit score is part of the priorities of most individuals. Unfortunately, when the unexpected happens, one may miss or submit late payments, which eventually affects their credit score. That is especially true in the face of the prevailing pandemic.
Presently, joblessness is at an all-time high, households are struggling to meet their basic needs, and economies are shaky even as the world reels from challenging times. As much as that is the case, money is changing hands every day, and today, more people are borrowing from various lenders than ever before.
Whether you need money to complete a project, secure your business’s future, pursue higher education, or for any other reason, the bottom line is that borrowing cash becomes inevitable at one point or another.
So, what happens when you want to borrow money, and your credit score is wanting? Before delving into that, here are some of the frequently asked questions about credit scores.
FAQs Regarding Credit Scores
Can The Information In My Credit Report Be Wrong?
Yes! Understand that everyone makes mistakes, including federal agencies and financial institutions. The only thing is that addressing any issues in your credit report can be pretty frustrating. The reason is that such a task is time-consuming since it will require repeated mailing, copying, and negotiating with credit-reporting agencies on several occasions will also be necessary.
On the other hand, maintaining and watching your credit from time to time is not an option. Otherwise, irregularities may set in without your knowledge. If you become a victim of identity theft, that can have far-reaching effects on your credit score. It is also worth mentioning that sometimes, you may bear the responsibility of dealing with such a situation.
Is Applying For A Loan With Bad Credit An Option?
Most people go for a loan for expenses like a car or a house even when their credit score is poor. Note that every late payment will damage your credit score, and lenders consider a wide array of arbitrary-seeming factors and your credit score before approving your loan.
That suggests that you may fail to access a loan even when you know you can repay it after assessing your budgets. The best part is that there are lenders out there who are willing to engage you when that is the case so you can get the financial help you need.
How Can I Fix My Credit Score?
Waiting appears as the ideal option for most individuals seeking to fix their credit scores. The reason is that hastening the process is not possible. As such, you should also avoid falling for anyone that claims that they can fix your bad credit fast. That will be illegal, and it can yield a resounding negative impact.
The solution here is remaining patient, paying your bills on time, ensuring that you do not max out your credit cards, and paying off any outstanding debts. Indeed, that may take several years because improving your credit score is a process. The only exception, in this case, is anyone who suffers identity theft since that demands the adoption of different measures. You should continue watching and examining your credit report, and you should also ensure you understand everything in it.
How Long Can A Late Payment Or Bad Decision Affect My Credit Score?
The general rule is that late payments can affect your credit score for up to seven years, which implies that you may suffer the effects of missing a payment for almost a decade. Also, unpaid taxes can impact your credit score, and a bankruptcy may be relevant for a decade.
So, What Can I Do In The Meantime?
You may suffer to some extent if you continue paying all your bills on time and paying off your outstanding debts in a bid to improve your bad credit. However, if you want to access cash quickly without waiting for months or years for your credit score to improve, you can consider pawns/title loans.
Personal title loans come in handy when you discover that you can pay off a loan if you get time to recover after making a big payment. The implication is that waiting for a bank to approve your loan will be unnecessary in this case.
Tips For Getting A Loan With Bad Credit
1. Research To Identify The Right Lender
Bad credit is always a problem for anyone planning to borrow money from a financial institution. As much as that is the case, there are reliable and trustworthy lenders out there you can approach. Such lenders will not only allow you to access cash fast, but you will also get the money you need even if your credit score is wanting.
Additionally, the right lender will not pose loan eligibility restrictions depending on your financial plans, and they will not dictate how you spend the cash they lend you. In some cases, they will even assist you with a car title loan buyout.
So, once you find the right lender after doing your research, you only need to approach and discuss your financial needs with them. Meeting the terms and conditions of the lender you opt for will allow you to access the loan.
2. Opt For A Lender Who Looks Beyond Your Credit Score
Having a particular level of credit is mandatory when applying for a loan. On the other hand, banks and conventional lenders demand a good credit score, which means that such lenders will not be the go-to solution for you if yours is wanting. In that case, the ideal lender does not disqualify you after running a credit check when you need a title-secured loan/pawn or personal loan. That kind of flexibility is instrumental when you need a loan with bad credit.
3. Apply For A Secured Loan
One can either apply for a secured or an unsecured loan. A secured loan requires you to “put something up,” which is known as collateral. An example of a secured loan is an auto title-secured loan. Choosing this option implies that you will put up your lien-free auto title as collateral for the loan you need. As a result, borrowing money with bad credit and accessing it fast will be possible.
Remember that you need a steady income source to help you repay your loan when applying for a secured auto title loan/pawn. The lender you approach will also run a credit check, but limited of poor credit may not necessarily disqualify your loan application as long as you satisfy the basic requirements.
You will also continue using your vehicle for the life of your loan. Otherwise, getting a car title-secured loan/pawn is pointless if you cannot use your automobile as you repay the loan.
Bad credit is not the end of the road when you need to borrow money for a particular need. Looking at the right places and engaging the right lender will help you get the loan approval you need even when your credit score is poor.