Having bad credit is not an uncommon problem in America. A great deal of people across the country still have bad credit today and it’s not always their fault. We understand that sometimes unforeseen problems can come up which make it difficult to pay down loans. The good news is that there are still options to get loans if you do have bad credit.
No matter how bad your credit may be as long as you meet some minimum requirements we should have a good chance at getting you a car loan. Most loaners ask that you be a US resident over the age of 18 and that you make at least $1000 a month and are employed. This is simple enough to do and once you have a steady income source, there are definitely options for bad credit auto financing. At this point you should not worry about some of the credit problems that have happened in the past.
Types of bad credit
Many people don’t even realize what bad credit really is. The companies that develop credit scores such as FICO and VantageScore do not set any standards for good or bad credit, instead they simply give loaners a picture of your credit history. Ultimately the biggest thing that your credit score does is to help determine the interest rate that you will receive as well as how much credit you will be approved for. Because of this some people who think they have bad credit in reality may not. Here is a breakdown of general credit estimates:
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
Fixing bad credit
Now the next question is, once you have bad credit what can you do to fix it? Thankfully there is a great deal of information available about how you can improve your credit score. Here are a few tips of what you can do to get your rating back to an excellent credit level.
1. Set up payment reminders: making payments on time is one of the biggest contributing factors to your credit score. By setting up reminders for your payments and making sure to make them on time you have a big impact on your credit rating.
2. Reduce the amount of debt that you will: while this can be difficult, if you are able to quickly pay off a chunk of the debt that you owe and lower it you will have a positive impact on your credit report. If you are shown to have paid off a large chunk of your debt at once this could have an immediate effect on your next credit rating.
3. Pay off old payments and get current on your bills: the longer that you continue to make late payments the worse that it is for your FICA credit score. Since you have to pay your payments anyways it is best to get current whenever possible.
How we help clients with bad credit
Over the years we have helped many clients with bad credit in both improving their credit score as well as getting a new loan that they need. If you think you do not qualify for a loan we encourage you to come and talk to us first. Perhaps there is something we can do to help you improve your credit rating and get the loan that you need.