A fraudulent company will pay more attention to how much it can get as an advance fee than your financial history, and it will keep bugging you to do business with it. So, it helps to learn ways to recognize scams and beware of them, especially if you are new to taking unsecured loans.
Viable Options to Bad Credit Loans
- Friends or Relatives
Ask friends and relatives for some of the emergency funds you need. They are usually your best source of help because they are willing to pitch in and will not ask for interest.
You can get a salary advance from your employer. More often than not, employers are willing to help out in emergencies, especially if you are on good working terms with them.
- Personal Assets
Take a look at your personal belongings, as there may be something valuable you can sell. It may be the best way to raise the money you need without owing anyone.
Q1. How do I know if my credit score is good?
The Fair Isaac Corporation (FICO) has a chart list that shows grading for different credit score levels. On the chart, the score that is officially considered fair is 580. Most loan companies that accept bad credit will not go below this score. For some, 620 is the minimum credit score, and any score lower than it is considered bad credit.
If the FICO chart is not what you need, you can request your credit history from major credit bureaus within the U.S. They have a record of credit histories, and you can get yours without any charge.
Q2. Can I improve my credit score?
You can improve your credit score, so keep a record of your financial history and if you are in debt. Make it a point of duty to pay on time, and show consistency in paying back loans, as it builds confidence and trust.
If you are not going to meet any payment schedule when paying back loans, make a report and ask for a change of date. Otherwise, you risk sinking your credit score further and ruining your financial record. That goes beyond just repaying loans, as it affects every type of financial payment.
Keep a regular job and always report for work, as this shows you are responsible. The job does not have to be a big one or pay huge money, but it must be steady. Besides, a job is an excellent way to earn money so you can repay what you owe. And future lenders will be more willing to work with you.
In addition, find someone with an excellent credit score to help along the way. It may be a friend or a relative, but the person should be able and willing to show you how they keep such a good score. Then, you can learn from what they tell you.
Q3. How long does it take to fix my credit score?
The information registered on your financial record plays a vital role in the length of time it takes to fix your credit score. If bankruptcy is part of why you have bad credit, it may take years to fix it.
Foreclosures and charge-offs also take years to fix, but not as long as a bankruptcy case. Merely making payments, no matter how timely, does not fix the credit score on its own.
Working with a credit repair professional may be your best chance of coming out faster for such serious cases. So, do things within your control to fix the credit score, and let the repair professional help you with the rest. While you are at it, keep from getting into more debt.