Credit history is an important factor in getting a loan. Therefore, you need to make sure when applying for bad credit loans that you know exactly where you stand as regards to your credit history. You also have to know about the risk that you can get declined due to bad credit even though you are applying for bad credit loan. This article will provide you with some tips on things you need to consider when it comes to your recent credit history.
1.) What is Recent Credit History?
There is no agreement as to what precisely recent credit history is.
Observation:
Credit history the consecutive records of debt payments on a credit report.
"Recent" would imply the latest entries on that particular report.
However, whether the latest are the last five, ten or a hundred is yet to be resolved. In the meantime we can only talk about an average.
Most lenders consider that your recent credit history is the last six months on your credit report; therefore this interval needs to be stainless if you want to have a chance for your finances to be approved.
2.) What about late payments, or missed payments?
You should know that you have to avoid some things. Firstly, you need to acknowledge the fact that if you pay your bills or debts late, it will get recorded into your credit report as a bad input. If you miss a payment, the situation is worse. If you don't get yourself up to date with your payments you may fail to pay your loan and that will ruin your credit score.
Remark: Having stained credit is a bad reputation if you want to get a loan approval, and it might reduce your chances of getting one. What's more, you need to keep your credit card and store card balances to as low as possible. Try to pay your debts in full or at least try to reduce the debt a little every month; don't pay only the minimum payments on your credit cards. After all, this will increase your chances of getting your loan approved.
3.) What about bankruptcy?
Everybody who gone through bankruptcy process should already know that financing is not simple after that, and that perhaps is not advisable either. On the other hand, if you still need to get a loan after bankruptcy, you have to comprehend that it is very tricky to get hold of funds with such poor credit score as bankruptcy produces you. Therefore, you'll have to wait some time while your credit score improves.
In most of the time, you'll need to wait at least 6 months since a bankruptcy was discharged in order for a lender to even consider you for a mortgage. Yet, you can increase your chances by offering collateral or a co-signer. Also you should be aware that those six months need to show the lender a clean credit history on your credit account. You should try to focus on having a good credit history to even consider applying for a loan.
1.) What is Recent Credit History?
There is no agreement as to what precisely recent credit history is.
Observation:
Credit history the consecutive records of debt payments on a credit report.
"Recent" would imply the latest entries on that particular report.
However, whether the latest are the last five, ten or a hundred is yet to be resolved. In the meantime we can only talk about an average.
Most lenders consider that your recent credit history is the last six months on your credit report; therefore this interval needs to be stainless if you want to have a chance for your finances to be approved.
2.) What about late payments, or missed payments?
You should know that you have to avoid some things. Firstly, you need to acknowledge the fact that if you pay your bills or debts late, it will get recorded into your credit report as a bad input. If you miss a payment, the situation is worse. If you don't get yourself up to date with your payments you may fail to pay your loan and that will ruin your credit score.
Remark: Having stained credit is a bad reputation if you want to get a loan approval, and it might reduce your chances of getting one. What's more, you need to keep your credit card and store card balances to as low as possible. Try to pay your debts in full or at least try to reduce the debt a little every month; don't pay only the minimum payments on your credit cards. After all, this will increase your chances of getting your loan approved.
3.) What about bankruptcy?
Everybody who gone through bankruptcy process should already know that financing is not simple after that, and that perhaps is not advisable either. On the other hand, if you still need to get a loan after bankruptcy, you have to comprehend that it is very tricky to get hold of funds with such poor credit score as bankruptcy produces you. Therefore, you'll have to wait some time while your credit score improves.
In most of the time, you'll need to wait at least 6 months since a bankruptcy was discharged in order for a lender to even consider you for a mortgage. Yet, you can increase your chances by offering collateral or a co-signer. Also you should be aware that those six months need to show the lender a clean credit history on your credit account. You should try to focus on having a good credit history to even consider applying for a loan.
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