The river of life has been flowing smoothly, then WHAM! You slam into a financial hold-up. An escalated, out of the ordinary amount of money has built-up and reshaped your monthly bill cycle, and this month has you in a choke-hold. Oh, and your past with credit has not exactly been great.
Have I Credit?
A lender checks a report to see the trend in how you have handled and repaid borrowed money–called credit–in the past. Acquiring credit happens easily when applying for a credit card, renting an apartment or home, paying utilities for this dwelling, and even for high-priced items, such as for a bedroom set or refrigerator.
I Have Credit and it’s Bad
Credit amount does not spoil. Credit goes ‘bad’ when the deal sours in the relationship between the amount of money borrowed and the past trend of repaying this credit. For instance, you may have had to skip certain bills in order to take on others, or maybe you paid it all on time but not in full for several cycles. Unpaid parking or moving violations also affect credit as well as unknown fraudulent activity, or even opening a lot of credit lines within a short period of time. The trend in your credit receives a scaled score or rating. Depending on how low or high it is, a credit lender, in their variety of forms, will decide the risk of giving into your request. There are numerous companies with their own mathematically-derived credit score, therefore, one credit score’s good-bad mark is not the same for another credit lender. Those with bad credit are often of high risk as their credit trend possibly shows their inability for making consistently on-time minimum payments.
Bad Credit Gets a Loan
There are options for helping out during one of these personal financial crises: personal loans. It is also called an unsecured loan. Here, a bad credit score may not be taken into account for whether or not you receive money. Not only is this loan a way for borrowing money when one’s credit is so-so, but it can help rebuild it. The lender assumes full potential risk as collateral is not required for obtaining a personal loan. Payments are shaped in manageable chunks that include a combination of the lent amount, lender’s fee for it, and interest. Divide all of this up into those nicely package repayments over a time schedule that fits within your budget, and one that enlivens confidence in paying it off properly. This loan typically deducts from your paycheck so no more worrying about missing a payment.
Dissolve the fear that your bad credit will interfere with life’s forward momentum. Allow the assistance of a personal loan during those tough times and for enriching your progress. Let it create more manageable and less stressful steps toward goals and obligations.