There are quite a few things that might cause you to have bad credit, and this, unfortunately, can make it hard to qualify for a loan.
However, some lenders are willing to help even people with poor credit. Simple Fast Loans, for example, is a fully licensed financial services company that offers installment and personal loans to individuals with less-than-perfect credit scores.
In most cases, 'poor credit' refers to a low credit score.
There are two main credit-scoring models (FICO and Vantage Score). Each of them uses slightly different formulas to determine whether you have good credit.
Regarding FICO, the range between 300 and 579 is what they consider "poor credit." Vantage Score deems anything between 500 and 600 "poor" and a score below 500 "very poor."
If your credit score falls below these numbers, the lender might see you as a risk. That's why banks and other lenders often turn down people with bad credit.
There are five leading causes of bad credit:
Payment history accounts for 35% of the total credit score. The reporting date (in case you fail to make the payment on time) is 30 days after the due date, but some lenders do not report to the credit bureau for 60 days.
Paying late can lower your score by up to 100 points, and, in some cases, this late payment can stay on your credit reports for seven years.
This might be the most damaging event to anyone's credit score. If you cannot pay your debts, you may be asked to file for bankruptcy. However, remember that most lenders prefer not to do business with such individuals.
When lenders cannot receive the borrower's payments, they can hire third parties to enforce the process. Once such accounts are sent to collections, the borrower's inability to repay will be mentioned in the credit report.
Around 120-180 days after the borrower becomes delinquent, the account will be charged off. This will leave a black mark on the credit history and remain in the report for up to seven years.
This happens when a borrower misses payments for a certain period of time. Such a loan will be sent to a debt collection agency. This will lower the credit score and impact the eligibility for credit in the future.
By the way, getting a loan (and making the payments on time, of course) can help you improve your credit score. In such a way, you will be developing a positive on-time payment history, which is one of the factors that influence the score.
Finding a reputable lender who will agree to work with a person with a bad credit score might be challenging. But the good news is that there are trustworthy companies out there that are ready to help you out if you ever find yourself in an emergency.
Simple Fast Loans offers installment and personal loans. Even if lenders have already turned you down, you can qualify for one of these loans with a less-than-perfect credit score. Furthermore, our friendly representatives are ready to assist you in obtaining the most convenient credit option for your specific case.
Simple Fast Loans provides loan services in 28 states, and all the paperwork can be done online and will perform a credit check with an alternative credit bureau if you apply for a personal installment loan. But bad credit won't necessarily prevent you from qualifying.
One of the best things about applying for an online loan is that you wouldn't have to spend your precious time getting to the store location. Everything can be done online (including the verification process).
To fill out the online form, you are going to need the following:
· A government-issued photo ID, like a passport or driver's license.
You will not need any collateral, and your credit score is not the main factor that will be used to determine whether you can qualify.
Remember that you should be at least 18 years old to apply, and you must provide a valid phone number so that the company representative can contact you if there is such a need.
The lender will set up the loan agreement and present you with an online loan package that must be signed. The best part is that the signing process can also be completed online.
Once you enter the e-sign process, you must follow the screen's instructions. Then, click the right spots on the agreement that require an initial or a signature.
You will get a text message once your signed loan agreement is received and another notification once the loan is funded. This might happen the following workday or even on the day of the application.
This is how Simple Fast Loans makes it possible to get the money you need, even with bad credit.
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