A bad credit score can make it difficult and decreases your chances of getting loan. So in order to improve your chances of getting loan you should opt the following strategies in top to down priority order;
Try and avoid a bad credit score in first place: Bad credit score can result from numerous different practices normally 5 C’s are to be followed in order to maintain your credit score. Firstly, you have to make sure that your credit history that tells about the experience of lenders who formerly provided credit to you, a credit report is generated which gives information about your credit payments. Secondis capacity, your income and stability helps lenders to judge whether or not you can afford a loan and repay them easily. The lenders decide whether loan should be granted to you or not based on value of collateral, this is normally done when applying for secured loans.Other than your income, your investments, saving and assets are used to weigh your chances so it is necessary to have a presentable capital. Some lenders are concerned with the use of loan to analyze their policies and conditions so they ask about your intentions, how you plan to use the loans. These all 5 C’s will help you build up a good credit score.
In case of bad credit score look at the right place instead of running after all lenders randomly:
Although prevention is better than cure but with business and economics it is a famous saying, “When in doubt assume the worst case.” So in case of a bad credit score you should be well prepared with a strategy and try to bring together reason and positivity to your loan proposal as much as you can.
The 5 C’s mentioned above not only help you get a good credit score but also prepares you in advance that what lenders usually look for so in case you have a bad credit score you will know how to prepare a proposal that make lenders trust your reliability and they are comfortable with your request.
One important factor that affects your credit score is Utilization. It is the percentage of available credit that is being used. High utilization has a negative impact on your credit score where as a low utilization confirms your reliability, stability and shows that you have a control over your spending and yes utilization is calculated for all credit cards that are in use. Now, when you are thinking of getting some loan you have to do some homework, you have to minimize your utilization, by making frequent payments so that your balance is low and the other way is to increase your credit.
History tells that lenders who entertain low- credit score customers usually go out of business, because these are high risk customers but still there are lenders who cater to low-credit score customers but you have to be very careful because they might have some ulterior motives or doing some scam business. A licensed broker is a reliable source to depend on as they have numerous lending resources, packages and programs.