What is bad credit?
Bad credit is an individual’s credit history qualification which shows that a borrower carries a higher credit risk. Failure to keep up with your credit agreement causes the score to go down and it gets harder for you to get approved for new credit since lenders are afraid to lend you because you might not be able to follow through the credit agreement. There are also other factors that affect your credit score such as the amount borrowed, remaining available credit amount and if you have defaulted on a loan.
How to improve bad credit?
- Timely bill payment. Not all the utility bills are recorded in your credit report, but some phone companies may report to the credit-reporting agencies if you have late payments.
- Watch out for the due date of your bills so you can pay at least the required minimum amount.
- Try to pay your debts as quickly as possible.
- If you have a credit card, try to stay below the credit limit.
- Checking your own credit report won’t change the credit score but if many potential lenders inquire about your credit score within a short time period, it may result in a negative effect on your credit score.
How we can help fix your credit
Your overall credit is a combination of several different sections. For instance, credit cards represent one type of credit usage, car loans make up another portion of the credit score. We at Approval Genie work with many lenders to approve your application where other lenders would deny it or find it too risky. Once you get a car loan, it shows up as a new mix of credit and help you improve overall credit report. If you make timely payment on your car loan, it will help boost your credit score and also show positive repayment history. A car loan is a step in the process for proving your credit worthiness and also your ability to payback debt.
Apply now and let us help you get approved regardless of your status.