The Best Way To Get Approved For Installment loans for bad credit

1. The Best Way To Get Approved For Installment loans for bad credit Installment loans for people with bad credit is an ideal form of financing. Unfortunately, people with bad credit have become the target of predatory financing companies. Just because they have lower credit scores than the average American, these lenders offer financing at exorbitant rates. The 5 factors that determine your credit score Before you enroll using a subprime lender, be certain you truly have bad credit score. There are five factors which influence your credit score: Payment history– if your credit report is full of late payments you will want to address this before you apply. Those late payments act as warning signals advising the best lenders to stay away. Revolving debt – one of the big indicators of bankruptcy is high revolving debt. Most people are forced into bankruptcy due to out of control credit card debt. Length of credit history– if you are new to the country or someone fresh out of college you may need a co-signer. Having no credit can be WORSE than having bad credit. Creditors aren’t sure how you will handle your credit line. They may extend credit, but only a small line of credit until you prove yourself. Types of accounts– Lenders like to see a variety of types of credit. Installment loans, car loans, credit cards and mortgage loans or rental payments being reported to your credit report Inquires – If you are shopping around, you maybe be doing a lot of damage to your credit score! Most lenders use a hard inquiry. These inquiries will bring your credit score down by a few points every time you apply to a new lender. If you are just looking for a new bad credit credit card, you should only apply to lenders that use a soft inquiry. These credit cards will not hurt your credit score when you apply. For a list of credit cards for bad credit that use soft inquiries click here! Each one of these facets are weighed different ways by the lenders who pull your credit. That is one reason why so many people are surprised by the credit score the lender tell them they have. For instance if you are applying for a bad credit car loan from a auto dealership. They will pull a credit report that gives a lot of weight to how you have repaid your auto loans. Getting approved for a bad credit installment loan Just like with any other form of financing you want to clean up your credit report as much as you can. Things you can do that will make a big difference in your credit score in 30 days or less: 1.Contact your creditors and negotiate paid for deletions. 2.If an account is in collections, contact them to catch up on your payments and request that out of good will they remove the negative information from your credit report 3.Pay down your credit cards. Bring your usuage under 30% 4.Contact a credible credit repair company or debt settlement company to help you to negotiate if you are not good at doing it. If you are more interested in fixing your credit on your own, check out our blog! We have 100s of articles to help you improve your credit score!