You are here, so probably you are already in trouble. We hope not, but nevertheless, let’s see what someone who is in trouble with the money can do. One thing is to look for the best personal loans for bad credit. But take care, even the best of them is not that good for you, unless you really need money urgently no matter the costs. Another way around is to understand what is wrong with your credit score. There are plenty of financial errors that could sabotage your credit score.But some do much more damage than others.Five errors in particular, are so serious that could be called murderers credit score.To protect your credit need to be aware of which are to avoid them.
1- Late payments
This is the public enemy number one credit score.Behind in paying their obligations destroys your credit score because the credit rating companies put more shares on the performance of your bill payment than any other financial performance.
In fact the failure or delay in payments do more damage to your credit score more other perpetrators of this list combined.That’s important because your credit score first, tells lenders if they can trust you with credit.If you are not paying your bills on time or if you a completely omitted payments, your credit score will be adversely affected.So it is crucial and essential to pay your bills on time.
2- The balances with amounts too high
This is not as important as your payment history but makes weight on the credit history of an individual.The execution of large amounts of debt is a definite red flag for lenders.They are very interested in knowing that you can handle the amount of money you want to borrow.Hence, credit rating companies penalize you if you borrow more money than you can comfortably afford.
Definitely not a good idea to run large balances on your credit cards.That’s a sure sign to lenders that you may not be able to handle any new credit.If you want a better credit score needs to maintain its debt to income ratio in balance.
3- Lack of credit history
You cannot get a job without a resume that describes your work experience.Similarly, a resume that illustrates your credit with credit experience is needed.That’s what your credit history is, your resume credit.If you are an experienced borrower credit history it is important, and if you are a beginning is crucial.Of course, this leads to the proverbial dilemma how to prove himself worthy of credit with a limited credit history?One answer may be to take out a secured credit card and start building your credit with it.
4- Too much new credit
The loan money comes with great responsibility and lenders want to see that you manage your credit carefully.If you are constantly opening new lines of credit your credit score will be negatively affected.By doing this continuously, the time came that he no longer give more credit.You must resist most credit card offers, taking only those that are vital to your financial strategy.Try to avoid opening many store credit cards to take advantage of discounts in shops.
5- Having the credit too limited
For a high credit rating it is necessary to have a mix of different types of credit: credit cards, a car loan, a home loan and a quick loan to be taken into account. How many of these credit scores are now released in its financial profile? Take action now to put them behind and you can quickly see how your credit score rises.
So again, even if you find the best loan for those with bad credit, be aware that it might hurt even more your chance to get a loan in the future.