How to Make Your Bad Credit Problems Go Away
Wouldn’t it be great if you could wave a magic wand and rid yourself of bad credit? Nobody really wants to default on their credit payments, because the repercussions are daunting. A lower credit score can adversely affect your financial stability! For many people, the issue of remedying bad credit is simply being able to pay it all off. Fortunately, credit card providers, banks and other financial institutions will be more than happy to work with you to make good on your payments. It may take a little longer, and you may have to do some juggling here and there, but eventually you can come out on top.
Find out exactly what your credit score is
The impact of bad credit on your life can be devastating. You can get denied for a home loan, an auto loan, or worse yet be approved for credit at extremely high rates of interest. The good news is that you can be proactive when managing your credit. Delinquent accounts are typically expunged within 7 years. And if you filed chapter 7 bankruptcy, you would have to wait 10 years for that to be removed from your credit report. For these reasons, you don’t necessarily want to wait an inordinate amount of time before you correct your credit problems. Luckily, the US credit bureaus provide free credit reports once a year. Before you do anything, check your credit reports! You will see any judgments against you, any delinquent accounts, and any credit queries made against your Social Security number. You won’t be able to find your exact credit score, but you will get an idea of where your credit situation stands.
Newsflash: Anyone can apply for a bad credit loan
Armed with the right information, you are better prepared to tackle the challenges ahead of you. Even if you have bad credit, you may not be aware that various companies offer a loan for bad credit . Depending on where you go, you don’t have to be subject to extortionary interest rates or unaffordable repayments. Many times these loans can offer terms that are lower than the APR you would pay to the credit card company!
Many reputable credit providers are now operating in this niche market. You can apply for funding anywhere from $250 – $5,000 in a matter of minutes. This comes as a surprise to many people who are too afraid to apply for credit facilities due to a poor credit score.
There are multiple categories applicable to people with different credit scores. Consider the following credit scores, loan terms, and percentages:
- Credit Score of 300-599 – under $5,000 loans at 18.88% with a repayment of 61 – 365 days
- Credit Score of 600 – 649 – under $5,000 loans at 17.73% with a repayment of 61 – 365 days
- Credit Score of 650 – 699 – under $5,000 loans at 15.90% with a repayment of 61 – 365 days
- Credit Score of 700 – 749 – under $5,000 loan at 11.01% with a repayment of 61 – 365 days
- Credit Score of 750+ – under $5,000 loan at 10.23% with a repayment of 61 – 365 days
There are obvious benefits to having a better credit score, but anyone with any credit score can qualify for a loan for bad credit. When you’re combating bad debts, it’s important to understand when judgments against you were filed. The date of the filing is day 1 and the clock keeps ticking from there. Delinquency is a more complex issue to tackle, but there are rules to help clients understand how to stay abreast of dates and debts. And when you’re checking your free annual credit reports, be advised that your Experian report will differ from your TransUnion report and that will differ from your Equifax report.
How to Make Your Bad Credit Problems Go Away – Final Thoughts
Your free annual credit reports do not tell you what your credit score is, you must pay for that separately. Nonetheless, these are important resources for you to use to understand what items you’ll have to focus on. If you find any discrepancies in your credit report, contact the creditor that is reporting the issue and make sure you get evidence to substantiate why you are disputing information on your credit report. Online disputes of discrepancies are easily done and can only a matter of a couple of days to get resolved. You may have to resort to the traditional letter writing option if you don’t get any feedback.
It is important to know that there are many avenues to explore when you are trying to figure out how to make your bad credit problems go away. The important thing to remember is that there are many options available to you to help improve your credit situation.
