Tips on How to Improve Credit Score and Get Loan with Poor Credit History 

Tips on How to Improve Credit Score and Get Loan with Poor Credit History 

If you have done some blunders in the past when it comes to credit, then first access how bad your credit is before you start panicking. At times you can challenge your credit report and rectify your credit score. So, don’t let your past mistake shun your present and make you fall in the category of high credit risk.

If you have landed up in bad credit loans due to bankruptcy or wage garnishment, it is impossible to fix your situation in short period of term. Your spiralling credit history will surely take time and money to turn around. Bad credit lenders will only offer you loan with a very high interest rate to offset the risk of non-payment as you fall in the category of high risk due to past credit score.

  • Bad credit car loan

If you have a poor credit score but want to buy a car of your own, the down payment may be as high as $3,000. Also, the interest rate may fluctuate from 19% to 29%. So, if you are going for a high-mileage car, you may end up paying $400.00 in monthly payments. To avoid that, you can contact lender who finance the car on the spot. The interest rate will also be not that high and if it is linked to your account (if reported to credit bureau), your credit score will also rise gradually.

  • Cleaning up bad credit items

If you have a bad credit history and have been denied loans, there is no point to wait for long to make it normal. Instead if the credit history is pulled, all the previous credit transaction and the respective credit score can be viewed. If some correction needs to be made, please write to the credit bureaus and request for the necessary changes.

  • Include the good news

If you have cleared the dues of a delinquent account which is not reflecting in the credit report, please present the proof of payment to the credit bureaus so that your credit report score improves.

  • A word of caution

You may hear from your social circle to pay off all your credit card dues to get a good credit score. However, this is not true always. If you close credit card with longest history, it will adversely affect you. So, it is recommended to close newer accounts as credit report score is calculated using the ratio of outstanding debt to total available credit.

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