You walk confidently into your bank, sit down across from the bank’s loan officer and apply for a personal loan. Then picture this: you are denied the loan. You don’t understand how “they” could have denied you; you don’t understand how a thing could have happened. In fact, you are a little embarrassed. But your girlfriend (or boyfriend) knows why. Sometimes you have a bad habit of forgetting to pay your bills. You have been reported, and no one wants to lend to you – or so you think.
Maybe you want some quick money, then you can go for best payout online casino in usa. Maybe you want to buy a new car. There’s lots of maybes, but the truth is that the bank denied you loan application. They told you that you have bad credit. How do you know you have bad credit before you make the fateful application (because a denied application can also be a knock against your valuable credit)? Believe me … you probably know. You’ve probably been late on a few payments to the electric company, couldn’t pay even the minimum credit card payment, or, maybe, you skipped one or two mortgage payments. Usually, traditional lenders don’t give lines of credit or finance large purchases unless they’re somewhat sure they’re going to get paid back.
How do the lenders know you’ve been late, or even missed a payment? Somebody has reported you to one of the three illustrious credit reporting agencies (Experience, Equinox and/or Trans-Union). And this, my friend, could lead to a low credit score. The lower your score, the higher your risk to lenders. You have bad credit.
There are creditors that will give you a loan on bad credit, but these usually traditional and come at the price of a high interest rate, which means you’ll be spending a lot more money over a period of time.
Is it possible for one to change one’s credit score?
No and yes.
Let’s deal with the no first. Say you need a loan as soon as possible. Don’t waste your time with the usual lenders, because they won’t touch your credit with a ten-foot pole. They don’t want to risk the possibility that you won’t pay them back. Who would? Second chance lenders. These lenders might give you a loan, albeit at a higher interest rate than a traditional lender (the cost of bad credit). Where can you find a “second chance” lender? Some advertise in the local newspaper or free newspaper. Often lenders will advertise at jackpot jill that they will welcome a loan application from anyone with poor credit.
As for the yes: talk to a credit consolidation or credit reclamation company. Service agents might be able to help you, or, at least, point you in the right direction. It’s also possible that your bank might make you a loan – if, indeed, you have changed your spending habits, the bank might be willing to take the risk. It never hurts to ask. And finally, try the Internet. You never know what you will discover with a simple search.