Do you have less than perfect credit? If you answered yes, that shouldn’t stop you from applying for a loan. No matter if you have poor credit due to financial mistakes or if you’ve just never used credit, these steps will help you get the personal loan you need.
What Does “Bad Credit” Mean Anyway?
The term “bad credit” is often misunderstood. Lenders look at your credit score; a mathematical formula created by credit reporting agencies, to showcase your credit-usage habits. Lenders will work with those who meet their specific, pre-designated limits. Loans for people with bad credit can be harder to obtain but are available. At Time Financing Service ®, we specialize in same-day, personal loans and look past your credit score.
What Factors Impact Your Credit Score?
If you pay your bills on time, keep your balances low, and use credit wisely, your credit score will rise. If you miss payments, use too much of your credit line, or apply for numerous loans at one time, your score could drop into a “bad” or lower credit score level. So what does exactly does that mean? Your credit score is based off these five things:
- Payment History
- Negative marks or late payments on your active credit accounts have a bad impact on your credit. Make sure to make payments on time to keep your score rising.
- Accounts for 35% of your total score.
- Credit Usage
- How much of your available credit are you using? Lenders like to see this number low.
- Accounts for 30% of your total score.
- Credit Age
- How old are your accounts? Creditors and lenders like to see an average account age of over five years.
- Accounts for 15% of your total score.
- Account Mix
- A variety of types of credit accounts show you can manage different types of credit. For example, credit cards, auto loans and student loans.
- Accounts for 10% of your total score.
- Credit Inquiries
- How often are you applying for credit? Keeping a low count on credit inquiries shows you occasionally apply for new accounts. It is recommended that you keep this number around two per every year.
- Accounts for 10% of your total score.
Why Might You Be Denied a Loan?
Many factors influence the decision of a lender to decline your application for a loan. This may include:
- A lack of employment or a steady stream of income
- No prior credit history
- They cannot verify your age or personal information
- Poor credit history, such as not making payments on a loan
- Delinquencies, such as bankruptcies or legal action taken against you for non-payment
What You Need to Apply for a Loan with Bad Credit
The key to overcoming these barriers is to work with the right lender, one that offers bad credit loans. Then, show that lender you have the means as well as the dedication to overcome any financial limitations you have. For Time Financing Service ®, this means providing us with the following:
- At least two open lines of credit (this can include utility bills or your cell phone bill, for example)
- Steady income from a verifiable source, such as paycheck stubs
- Proper identification of who you are and where you live
When you work with us, you increase your chances of obtaining the funds you need to pay down your debt or get a fresh financial start. Even if you have poor credit right now, our personal loans can help you overcome this.
How Time Financing Service ® Can Help You With a New Loan
At Time Financing Service ®, we know how hard it can be to find the right loan for these difficult situations. We encourage you to apply for a personal loan either online or at one of our 25 locations. We offer loans for up to $12,000 so you can work to build a solid financial future for yourself. We help hard-working people get the personal loan they need. Contact us now or apply online.
As always, if you’re in need of cash, feel free to apply today. You can also follow us on Facebook and Instagram for updates!