Once you’ve got yourself a bad credit score, it can seem like the end of the (financial) world, but it’s not. According to the UK’s Money Advice Service, there are a number of ways you can improve a bad credit score, but of course, rebuilding a good credit score doesn’t happen overnight and it won’t solve your immediate cash-flow problems. When you apply for bad credit loans online, instant decisions are provided, which could provide the quick and convenient help you need.
Let’s First Take a Look at What Bad Credit Is
The term “bad credit” refers to a history of your dealings with credit. It provides potential lenders with details on bankruptcy, late payments, and blacklisting. As different lenders analyse your credit profiles differently, it’s hard to assign a finite credit score to an individual. As such, your current relationship with money is often more important than your credit score.
4 Ways to Improve Your Chances of Getting a Bad Credit Loan
Below we share just a few ways to get a loan with bad credit:
1) Check your credit score.
You might think this is a waste of time, but it’s not. It’s important to make sure your credit record is up to date and doesn’t include any errors. By updating and verifying that old expenses are settled, you could immediately improve your credit record and chances of getting a loan. You can check your credit score with Experian.
2) Avoid hard credit enquiries.
When you apply for a loan, credit card, or rental contract, a hard credit check is done to assess your credit record. It’s a good idea to avoid applying for credit or loans too often. This will be noted on your credit record and have you marked as a ‘high risk’ client. Use a loan company that offers soft credit enquiries and promises bad credit loans online with an instant decision.
“A soft inquiry occurs in cases where you check your own creditor when a lender or credit card company checks your credit to pre-approve you for an offer. Soft inquiries do not appear on your credit report and do not impact your credit scores.” – Experian
3) Ensure you can afford the loan.
One of the biggest determining factors of a bad credit loan approval is affordability. Most loan companies will ask you to complete an affordability assessment that lists your income and expenses. This is used to calculate if you can actually afford to pay back the loan.
4) Get a friend or family to co-sign the loan agreement.
You can instantly increase your chances of getting bad credit loans online by having a co-signatory. Your co-signatory must have a good credit record and be willing to sign a contract stating that they will cover the cost of the loan if you default on any of your payments.
Finally…
It can be difficult to get a loan with bad credit, but it is certainly not impossible. Take the time to consider the above tips and instantly increase your chances of getting the loan amount that you need.
