Did you know that over 61 million US consumers have a “substandard” credit rating? According to three major credit reporting agencies, FICO is rated below 640 points. An unsatisfactory (or even decent) credit rating can be caused by many different reasons: job loss, health problems, divorce or improper financial management. For many, this is the last of them and is a direct result of excessive borrowing and budget overruns.
Direct payday lenders understand that for some reason a person has a subprime loan, we all make mistakes. They also know that bad credit comes at a price, which could mean paying higher interest rates on credit cards, mortgages and car loans, as well as giving up a loan and even losing job opportunities. That’s why they don’t look at a person’s credit rating when applying for a prepaid loan. Taking a short-term loan in case of an emergency with cash is normal and will not affect your credit, but you should still think about how you are going to restore your credit rating and get out of the below average category to provide yourself with more opportunities to borrow financially. funds. in future
The first step is to know where you were in relation to your FICO score. You can do this by ordering a copy of your credit score at three major credit bureaus: Transunion, Experian, and Equifax. Every American consumer is entitled to one free copy of his report every year. You can request your report online or by calling directly. Unfortunately, you have to pay to get your FICO account with your report, but it's worth it because it determines your credit worthiness. Three reports may vary by bureau and will change over time as your credit history changes. After you receive all three, review them individually to check what has been reported and to make sure that everything is correct. Errors in your reports can be costly and affect the future of your loan, so it’s very important to check that everything is correct. If you find something that you think is not accurate, it is important that you immediately challenge it with this particular bureau. Your report should come in a form allowing you to do this.
Assuming your credit rating needs some help, it’s important that you take steps to recover your account and fix any errors that appear in your report. This will not happen overnight, in fact it can take months or years, but be patient and remember that you guarantee your future credit worthiness. Although repaying a loan before salary does not increase your account, it will not allow you to pay additional interest and fees, and it will also free you from the opportunity to start paying off any other high-interest loans or credit cards. Once you start doing this, your credit rating will increase. Keep in mind that although salary lenders do not manage your loan and do not report it when repaying the loan, in case of default on the loan your account may be received by a third-party collector, which means that it is likely that he will report it. this is at the credit bureaus. Call your lender right now if you cannot make a payment.
In the meantime, keep checking your credit reports to make sure your efforts are reflected in your account. If you see something inaccurate, be sure to report it. You not only want to pay attention to errors associated with the debt, but also want to make sure that you are not a victim of identity theft or fraud.