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Four Myths About Bad Credit

Bad Credit Myths

Bad credit gets a bad rap — and for good reason. It only takes a few serious mistakes to destroy your credit score; and while a credit score can drop rapidly, it can take years to repair the damage. In the meantime, a low score can stop certain job opportunities and result in higher insurance premiums. It’s a bad situation to be in, but bad credit is not the end of the world. There are several untruths regarding bad credit, and it’s these myths that discourage some people from improving their credit history. They either feel that it’s too hard, or that their efforts won’t matter. However, by distinguishing truth from fiction, you might find the motivation to fix your credit. Here are four common myths about bad credit. 1. You can’t buy a house A good credit score can help you qualify for a mortgage loan and a good interest rate. However, a low credit score doesn’t always ruin the chances of finding a home loan. You might not qualify for conventional financing with a score under 680, but you may qualify for a home loan insured by the Federal Housing Administration (FHA), which only requires a minimum credit ...

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Practical Ways to Overcome Credit Hurdles

Good credit/bad credit

Life situations factor into your credit issues. A divorce, illness or death can impact your ability to make monthly payments. If you default on your bills and your accounts become 30 days past due, creditors will report the lateness to the credit bureaus. Once this information hits your credit file, your scores will drop. These events are unfortunate and often beyond your control. But these are not the only causes of credit issues. Sometimes, the underlying cause is preventable. For example, living above your means may result in relying on credit cards to get by each month. If you have a shopping problem, you may use credit cards to buy things you don’t need when cash is unavailable. And if you’re bad at organizing your finances, you may forget about due dates or misplace bills, which also triggers lateness. Credit is nothing to play with, as your history and score can determine whether you get a mortgage loan, an auto loan or qualify for other types of financing. For this matter, you need to take your credit seriously. While you’ve probably heard this kind of advice before, it’s seriously enough that it bears repeating: there are simple ways to fix ...

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Getting a Loan if You Have a Bad Credit Rating

The following is a guest post. If you’d like to submit a guest post, please contact me.  Just because you have an adverse or bad credit rating doesn’t mean that it becomes impossible to borrow money. The main difference will be that it will cost you more because you are deemed to be a higher risk to lenders. That means a higher Annual Percentage Rate (APR) will be applied to the loan by poor credit lenders when compared to the APR on a personal loan for someone with a good credit rating. These rates, however, are still far lower and far more competitive than short term pay-day loan rates and preferable if you are looking to spread out your borrowing over several years.

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