Month: October 2019

Understanding Bad Credit

Everyone wants to know, “Do I have bad credit?” But first, understanding what bad credit means is crucial. Bad credit usually happens when you don’t pay your bills on time, owe a lot of money, or have a history of not handling credit well. This can affect your ability to get loans, credit cards, or even rent an apartment. If you’re wondering, “how do you know if you have bad credit,” it’s simpler than you might think.

Bad credit can sometimes feel like a hidden score that determines your financial health. But it’s not hidden at all. In fact, you can easily find out your credit standing. If you’re asking, “how do I know if I have bad credit,” or “how to check if you have bad credit,” the process involves reviewing your credit report.

How to Check Your Credit

Checking your credit isn’t as daunting as it sounds. There are several ways to check bad credit. Firstly, you can get a free credit report annually from major credit bureaus. This report will show your payment history, current debts, and other financial information that impacts your credit score.

If you’re not sure how to check bad credit history, here are some steps:

• Visit a credit bureau’s website or contact them directly.
• Request your credit report. This can often be done online.
• Review the report for inaccuracies or disputes.

Remember, checking your credit report doesn’t lower your credit score. It’s a smart move to stay informed about your financial health.

What to Do If You Have Bad Credit

Discovering you have bad credit can be worrying, but there are steps you can take to improve it. First, understand what’s dragging your score down. Is it late payments? Too much debt? Once you identify the issues, you can start fixing them.

Paying bills on time is one of the best ways to start rebuilding your credit. If you need financial assistance, options like loan no credit check might be considered, but be cautious as these can have high interest rates. Alternatively, if you’re on government benefits, exploring loans on centrelink could also be an option. However, managing these loans wisely is crucial to not further damage your credit.

Lastly, if you’re looking to borrow money despite your credit situation, you might be interested in knowing if you’re qualified to be given a loan. Even with bad credit, there are lenders who specialize in bad credit loans, designed to help you get back on your feet financially.

Remember, bad credit isn’t permanent. With diligence and smart financial decisions, you can improve your credit score over time. Always keep an eye on your credit, understand what affects it, and take proactive steps towards a healthier financial future. Knowing “how to check if you have bad credit” is the first step in this journey.

Financial struggles are a part of life. You may have dealt or are still dealing with money issues that prevent you from fulfilling your financial obligations, such as regularly paying your dues on loans and credit cards. Whilst financial challenges are beyond your control, you know you have to be on top of these concerns in order to avoid being haunted by them in the future.

This is why it is very important to settle financial obligations in a timely manner, so they will not result in a bad credit history. An unimpressive financial record affects many aspects of your life, and this is the last thing you want when you intend to get your life back on track.

You may think that repairing your credit history is easier said than done, but all it takes is empowering yourself with the right information that will allow you to take the necessary steps towards fixing your credit history and hopefully, maintaining its good standing.

Here, we’ve outlined the important steps you must keep in mind to improve your credit history in order to qualify for a cash advance loan.

1. Know your credit score

The initial step to fixing your credit history is knowing where your credit stands – that is, having your credit score checked, which sets the tone for any other step you will take next. A credit score is a three-digit number that gauges a borrower’s qualification for a loan or a credit card. This is used by all lenders when assessing if a borrower is eligible for a loan or credit card approval.

A low credit score may not get you approved when you are applying for a loan or a credit card. Lenders will attribute this to your incapability to pay regularly, hence will lead them to conclude that you are too much of a risk to gamble on.

A high credit score, on the other hand, is what a borrower should aim for in order to get approved for a loan or credit card application. A good credit score simply indicates that you have been a responsible payer in the past, thus will give lenders the impression that you can be trusted to take on a new loan or credit card.

How to find your credit score

To know if your credit score is below or above average, you must secure a copy of your credit report from a reputable credit reporting agency. When requesting for your report, you will need to provide:

• Your full name and date of birth

• A valid phone number

• Your address, both current and previous

• Proof of identification, such as your birth certificate, passport, or driver’s license

• Proof of address that also indicates your full name, such as a bank statement or utility bill

• Names of your current and previous employer

The good news is that you can file for this information and get your credit report in an instant. Agencies like Equifax and Experian provide credit scores and credit reports for free when you access their websites. It is recommended, though, that you get in touch with multiple credit reporting agencies to get your credit report. Having a good credit score will prevent you from needing a no credit check loan.

Upon receiving your request, your credit score will be assessed according to a number of different factors. Some agencies may provide different information about your credit history, which may affect your score. Most of these agencies also offer credit reports for free but only once per year. You can get yours within 10 business days or if you want to get one immediately, a small fee is required to expedite its release.

What to do when you receive your report

Once you receive your credit report, make sure that it indicates the following:

• Your credit account information

• Your monthly payment history

• Your credit inquiries

• Your defaults

It is important that you review your credit report carefully to check for any errors or omissions. Not only should you check for the right debt amounts but also your personal details. When checking the debt amounts, make sure that they are not listed twice.

Should you have any other negative issues like bankruptcy or liens, keep in mind that these financial legal issues may eventually age off your credit reports.

2. Find out if there are errors in your credit report

Should you find any errors in your credit report, it is a must that you report this to the credit reporting agency where you filed the request. Small errors may be amended right away, but if the mistake comes from the creditor, it could be much more complicated to fix.

If the information in your report is inaccurate, you can go to the Australian Financial Complaints Authority to report the mistake. You can also get in touch with the Ombudsman to ask for help should your concern takes longer to be addressed.

You can also hire the services of a credit repair agency to amend the defaults or negative listings on your credit record. Such agencies get the job done for a one-time fee.

So as you review your report, take note of the following to ensure they aren’t inaccurate:

• Your outstanding debt isn’t reflected on the report as the creditor failed to notify you

• Your report doesn’t reflect the renegotiated terms or payment arrangement you and the creditor agreed upon

• Your report indicates an account that was erroneously created

• Your report shows a new account that was created as a result of identity fraud

• Your report indicates that you have a default account, or that your account is overdue for more than two months

3. Repair your credit score

Once you know your credit report isn’t inaccurate, the next question would be: Do you need to repair it? To know if your credit score needs any repair, you have to know if yours is on the negative or positive side of the credit score spectrum. You may need to repair your credit score if you expect to get anything other than no credit check payday loans.

A low credit score is one that falls between 0 and 620. If yours is anywhere between these numbers, it simply means your credit history is below the accepted average credit score, which may result in disapproval of that loan or credit card you are applying for or much higher interest rates will be given unto you should your application get approved.

So, the last thing you need is to have a poor credit score when applying for a loan or credit card. It is thus important that you know the factors that may lead you to get a low credit score, which includes not only late payments on your dues but also bankruptcy, defaults, overdue accounts, and one too many credit inquiries in such a short period.

If any of these reasons led to your poor credit score, know that there is hope. The next step to take is moving your credit score from the negative by adopting good paying habits.

How to build a positive credit history through good financial habits

You can start building a good enough credit score to get a loan to payday with paying your bills on time, which will set in motion a lifestyle of being financially responsible. Timely pay your rental dues, credit card bills, and other utilities to avoid not only late-payment charges but also a bad record on your credit history. Overdue payments typically remain in credit reports for a minimum of five years, and when lenders see that you have a history of late payments, they will take this into consideration when assessing your eligibility for a loan or credit card.

When paying your bills, make sure to pay meet the minimum payment required. If you can afford it, pay the amount due in full to avoid paying for accumulated interests. If you have bills that you share with a family member, it is wise to put these accounts under your name to help improve your credit history.

If you can, make a habit of staying ahead of your payments. If you find yourself slightly behind, make sure to pay your dues immediately once you get the chance. Know that older late payments that are reflected in your report have more impact than recent payment records, thus may still affect your credit assessment.

You must also work with your lender should you find yourself hard-up on cash and won’t be able to make a repayment. It is better to notify your lender immediately, so you may ask for an extension or negotiate for another payment arrangement that will allow you to meet your future dues in a timely manner.

In times when you can’t keep up with all your payment dues, it is a smart move to opt for direct debits or automatic payments. You may use bill-tracking apps like Prism or Mint which sends an automatic reminder when your payments are due. Or, you can simply keep a calendar of all your payment dues if you are not too keen on using high-tech apps.

4. Consider a low credit limit

The final step to improving your credit history is to keep your credit balance low. This means switching to a credit card that offers a low credit limit. With credit card that has a larger credit limit, you won’t be able to control your spending.

With a credit card that has a lower credit limit, you may set your credit limit in the amount that you can afford to pay. To know the credit limit you can afford, you can check your debt-to-credit ratio. Keep in mind that a low credit balance is much better than a high balance that you cannot pay off consistently.

You can lower your credit limit by choosing a credit card that offers lower interest rates. Or, opt for a new credit card that will allow you to transfer your credit balance at a much lower rate.

Remember to apply for a credit card when it is only necessary. Avoid applying for multiple credit cards, especially when you do so in a short period of time. Note that multiple credit card applications also negatively affect your credit score.

You may, however, consider diversifying your credit, which allows you to pay for multiple credit accounts at a later date. For lenders, this indicates sound payment practices, as they can see that whilst you have a number of credit accounts (e.g., multiple credit cards, short- and long-term loans, mortgage, or car loan), you responsibly pay for your dues. Make sure, though, that credit diversification suits your needs and indeed something that your resources can afford to meet.

Applying for a loan with a bad credit history

A bad credit score doesn’t have to dishearten anyone who wishes to apply for a loan or credit card. Some lending companies are lenient enough with their assessments, as they believe assessing one’s credit history is just a small part of the evaluation process when assessing an individual’s ability to pay. They may even accept Centrelink as a form of payment to receive a Centrelink loan.

Some lenders would rather assess your current financial status than your past financial-related blunders. More often than not, they believe a bad credit history doesn’t completely say everything about an individual’s financial responsibility.

Nevertheless, you’d be better off on the safe side when credit history is concerned. Whilst you cannot do anything anymore about the past mistakes that led you to get that bad credit score, you can do something about it now by making an effort to repair it and further improve it, so it will no longer negatively impact your life in the days to come.

Apart from the simple tips you can follow to improve your credit history, you must also adopt the habit of making sound financial choices. You can do so by avoiding the following:

• Renewing your loans

• Bills amounting to $159 that are overdue by two months

• Transferring multiple credit card balances

• Lack of desire to pay off or at least reduce your outstanding debt

These unhealthy financial practices will affect your credit score, which ultimately damages your credit history. Remember that lenders give a much higher regard on credit histories that reflect sound repayment habits, as this proves that you are responsible with the way you handle your financial obligations.

In times of financial strain, understanding the differences between various types of quick cash solutions can make a significant difference in managing your finances effectively. Let’s delve into the distinctions between cash advances vs payday loans, along with other loan types like personal loans.

The Basics: Cash Advance vs Payday Loan

A cash advance often refers to a service provided by credit card companies, allowing cardholders to withdraw cash against their credit limit. This type of advance usually comes with a high interest rate and starts accruing fees from the moment you withdraw the cash. Conversely, a payday loan is a short-term, unsecured loan intended to cover expenses until your next payday. Payday loans require repayment in a lump sum on your next paycheck date and are notorious for high interest rates and fees.

Advance vs Loan: Key Differences

The term advance typically implies you’re using money you expect to receive soon, like your salary or credit limit, whereas a loan involves borrowing money that must be repaid over time with interest. In the context of cash advance vs loan, a loan might offer more flexibility in terms of repayment structure compared to an advance which often demands quick repayment.

Payday Loan vs Cash Advance: Which to Choose?

Choosing between a payday loan vs cash advance depends on your immediate needs and financial situation. If you need instant cash loans, a cash advance might be quicker since it leverages your existing credit line. However, if you’re looking for same day loans, so you can make a sound financial decision, a payday loan might offer the immediate funds you need, albeit with a promise of repayment in your next paycheck.

The Cash Advance Loan

A cash advance loan can be considered a broader term encompassing both cash advances and payday loans, where the primary focus is on quick access to money. This can be particularly useful when you’re facing urgent financial needs but might come with stricter repayment terms and higher costs.

Personal Loan vs Payday Loan

If you’re considering alternatives, a personal loan vs payday loan comparison is crucial. Personal loans generally offer lower interest rates, longer repayment terms, and the possibility of larger loan amounts. They are often used for consolidating debt or funding larger expenses. Payday loans, on the other hand, are meant for short-term relief and are usually for smaller amounts with higher interest rates. If you opt for a personal loan, ensure it’s one where the high acceptance rate loan you got should be paid within a short amount of time to avoid prolonged debt.

Considerations for No Credit Check Options

Finally, for those with less-than-perfect credit, options like no credit check loans might seem appealing due to their accessibility. However, they often come with the highest interest rates and should be approached with caution.

When considering these financial products, always read the fine print and understand the terms to avoid unexpected financial burdens. If you find yourself in need of quick funds, remember to assess whether getting yourself a payday loan is the right solution for your financial health.

A good credit score is crucial to helping you gain financial freedom. Unfortunately, not everyone understands how this financial concept works and the role it plays in ultimately achieving a financially stable life. It is important that you arm yourself with handy information about credit scores and keep in mind why you should improve yours.

Do you want a direct lender loan? If so, apply today with Perfect Payday and we will introduce you to a lender willing to let you borrow money. Submit your application today for a quick decision.

Read on to know what constitutes a good credit score, how you can check and improve your own, and why you should work on getting your credit score above the below-average threshold to make a positive impact on your financial freedom.

What’s a good credit score?

Credit reporting agencies in Australia use the same band descriptors in order to evaluate your credit rating. Different agencies, however, use different scales in checking a credit rating: they may either use a scale of 0 to 1,000 or 0 to 1,200.   

Credit reporting agency Equifax, for instance, use the 0 to 1,200 scale when making a credit rating check. Experian and illion, on the other hand, check a credit rating using a scale of 0 to 1,000. No matter the scale method, this process is utilized to let you know where your credit rating currently stands.

Below outlines how some credit reporting agencies in Australia evaluate credit ratings.

Credit Band Descriptor	Equifax	Experian	illion
Excellent	833 to 1,200	800 to 1,000	800 to 1,000
Very Good	726 to 832	700 to 799	700 to 799
Good	622 to 725	625 to 699	500 to 699
Fair or Average	510 to 621	550 to 624	300 to 499
Weal or Below Average	0 to 509	0 to 549	0 to 299

 

The band descriptors are pretty self-explanatory: when you find yourself with a credit score that lies between 0 to 299, 0 to 509, or 0 to 549, this means your credit rating is weak. Meanwhile, a credit score of between 800 to 1,000 or 833 to 1,200 is an excellent credit rating.

Simply put, a high credit score is a good position to be when you want to improve your financial situation. If you’re under this threshold, no need to worry. There are ways you can adopt to improve your credit score. The first thing to do, however, is to know how you can check your credit score in order to know if you need to improve it or not.    

Simple steps to checking your credit score

Here’s how you can simply check your credit score if you’re living in Australia:

1. You can visit the website of any credit reporting agency to have your credit score checked. You may file your enquiry at any of these credit reporting agencies: Equifax, Experian, or illion (also known as Dun and Bradstreet). These are some of Australia’s top credit reporting agencies, so most credit score enquiries are filed with them.
2. You can also visit other websites to have a quick credit score check. There are websites that provide a free credit score check online, which is an ideal move when you want to know yours in an instant.
3. To know which option suits you best, you can also check sites online for complete details on how you can go about checking your credit score securely. 

Tips to improving your credit score

No matter which option you choose, know that it will serve you well to have your credit score checked by different credit reporting agencies. This way, you will gain more knowledge about your credit score and how it impacts your financial situation.   

Whether you’re above or below the credit band descriptor, there’s always room to improve your credit score. Below are some ways you can do:

1. Change your financial habits

Achieving a good credit score starts with acknowledging that you need to alter your financial habits and start and maintain a good one. This means being more responsible on how you spend as well as handle your loans.

You can start with adopting a habit of paying your bills on time. This way, you don’t have to deal with interests or additional charges on late payments.

As much as possible, make good on your promise of paying your outstanding personal loans or any credit card balances. On-time payments on these obligations will keep you from making repayments later.

Finally, avoid availing yourself of other loan or credit card applications – even if opportunity presents itself. You don’t want to deal with paying off more loans than you can ever handle.    

2. Make a habit of checking your credit score

Having your credit score checked regularly will let you know how you can further improve your financial situation. When you know where your stand financially, it is easier to adopt more ways on how you can adjust your spending.

3. Arm yourself with more financial information

Good thing we’re in the age of information where everything can be accessed with just a few clicks on your laptop or mobile phone. Take advantage of financial information offered online to give you more tips on how you can improve your financial situation.  

What a good credit score can do for you

All the financial information you want to know about improving your credit score ultimately boils down to achieving one thing: gaining financial freedom. It might seem too daunting a task to attain, but nothing is too impossible to achieve when you know the benefits outweigh the disadvantages.

A high credit score can impact your life in more ways than one. Below are just a few of the advantages of having a good credit score:

1. You have the upper hand when negotiating a loan

A good credit score can give you more negotiating power when discussing the terms of a no credit check loan. When a bank you applied a loan or credit card with sees your credit history, it will be easier to get their approval or negotiate the terms of your application, as they see from your financial record that you are a responsible payer.

The high credit score you possess serves as your influencing power. You can persuade or haggle your way into getting the loan or credit card terms you want simply because you know – and the bank knows – you can pay for your financial obligations on time.

As you have the upper hand, your confidence also increases. If for any reason the payment terms you demand cannot be agreed to by the bank, you can simply tell them off that you can get a better deal in another. You walk away with confidence, knowing that you possess the power and that any bank doesn’t have a hold on you anymore.   

2. You can get a better job position

This holds water when you are applying for a position in the financial industry. With a good credit score, your prospective employer will see that you can be trusted with handling finance-related concerns, due to your outstanding credit history.

A high credit score serves as a character reference of sorts when applying for any other employment. A future employer may use this information as a consideration when gauging your suitability for the job position you desire. A quick check from your former boss is all it takes for a future employer to know that you can be trusted to handle a delicate position and thus the most qualified amongst other candidates. 

The credit score you possess reflects your being financially responsible. In cases where you need to change jobs, a good credit score is not only your bargaining chip but a testament to your credibility as an employee and integrity as an individual.  

3. You can move to a new place with ease

When you find yourself on the hunt for a new house or apartment to rent in the city, a good credit score can help you get the place you desire. Landlords may refer to your high credit score as reason enough to award you the house or apartment you want to rent. 

If you need to borrow money and have nowhere else to turn, consider getting an instant cash loan from Perfect Payday. You receive a quick decision on your loan after submitting an application that only takes minutes to complete.

A good credit score is your edge over any other individuals who also want that rental. When you’re at the other side of the spectrum, there’s no way any landlord would trust you when they see that you have a bad credit history, as you more or less may also have a tendency of not paying your rent regularly.    

This is the last thing you will ever want when you badly need that strategically located apartment you’ve been eyeing. That is why you need to keep your credit score within the above-average range in order to gain the trust of a prospective landlord.  

4. You get better rates on home loans

When you get to a point where you’re ready to buy your own home, your good credit score can serve as your negotiating power when getting a home loan approval from a bank. No bank will give its approval when they see you have a bad history of borrowing.

Banks are very strict when it comes to credit scores. A bad credit record is all it takes to turn down something as simple as a personal loan. For something as big as a home loan, trust that you will never ever get bank approval for it when you walk around with that bad credit record on your name. 

So, with a good credit score, bank loans may be acquired easily. On top of this, it may also give you the upper hand when negotiating the terms of your home loan. You can easily refer to your good credit standing when discussing with the bank about your credibility as payer.     

5. You can get cheaper rates on utilities

A good credit score is also important when seeking the approval of utility companies. They may refer to your credit record to check if you are capable of making regular payments. A single bad record, such as late payments, may force a utility company to ask for a deposit from you to make sure you’re a risk worth taking.

Such additional cost is the last thing you want when sorting your utilities. Maintaining a good credit score is then important in order to avoid shouldering any additional expenses in the future.   

6. You get better payment terms on insurance

A high credit score can give you bragging rights when availing yourself of insurance. It will be easier for insurance companies to assess if you deserve better rates on your insurance, once they see your history of responsible paying. 

Insurance these days doesn’t come cheap, which is why you need all the bargaining power you can get to get the best deal. A good credit score can give you lower insurance rates, which not only saves you money but also ensures that your future is protected without putting a dent on your wallet. 

With all these benefits of having a good credit score, it becomes much easier now to choose the path of repairing your credit score. Once you move from a bad credit score to an excellent one, keep in mind that you need to maintain that standing as it affects many aspects of your life.    

A useful tip to get your finances going 

As you work on improving your credit score, inevitable situations may happen along the way which may need you to ask for financial help. A quick loan is, of course, the best solution you can think of, but you may be hesitating to avail yourself of one due to your unimpressive credit score.

Know that there are lending companies that can help you during your time of need. While checking your credit score is a requirement, think of this as part of any lending company’s standard practices.  

To be qualified for a short-term loan, the standard requirements include: (1) Being of legal age (18 years old or over); (2) A regular income for at least the past 90 days that you receive via a personal bank account; and (3) A valid contact number.

Once you meet all these requirements, you can visit a reputable lending company’s website to file for loan application. While you’re at it, you may want to use their loan calculator to check if you’re qualified based on the payment term you choose. 

While you’re applying for a loan online, remember to check out helpful information on how you can sort your finances and improve your credit score. The first step to getting financial freedom is keeping yourself informed about how you can efficiently handle your financial obligations and ultimately, be responsible about money.

Credit repair is all about fixing your credit so you can get loans, credit cards, or even a better job. If your credit score isn’t what it should be, you’re not alone. Many people find themselves needing to repair their credit, especially after tough times like job loss or unexpected bills.

Why is this important? A good credit score opens doors. It can mean lower interest rates on loans, better deals on insurance, and even easier apartment rentals. But how do you start repairing your credit? It begins with understanding where you stand and knowing what steps to take.

If you’re looking into high acceptance rate loans, having good credit can really help. But if your credit needs work, don’t worry. There are ways to improve it, even if you’ve had defaults or other issues on your credit report.

Steps to Repair Your Credit: It’s Easier Than You Think

Repairing credit might sound hard, but it can be straightforward. Here are some steps you can take:

• Check Your Credit Report: Get a free copy of your credit report from major credit bureaus. Look for errors or outdated information. If you find mistakes, dispute them. This is crucial for credit repair and default removal.
• Pay Your Bills on Time: Late payments can drag your score down. Set reminders or automate your payments to avoid this.
• Reduce Your Debt: High balances on credit cards can hurt your score. Try to pay more than the minimum each month.
• Don’t Close Old Accounts: Keeping older accounts open can help your credit score by showing a long credit history.

Sometimes, you might need a loan from direct lender if your credit isn’t great. These lenders might be more flexible, but remember, repairing your credit can lead to better loan terms in the future.

Choosing the Right Credit Repair Service: Experts at Your Side

If doing it yourself seems overwhelming, consider hiring credit repair experts. They specialize in credit file repair and know the ins and outs of credit laws. Here’s what to look for:

• Reputation: Look for companies that are well-reviewed and trusted. Check if they have positive feedback from past clients.
• Transparency: Good services will explain their process clearly. They should tell you what they can and can’t do.
• No Upfront Fees: Beware of services that ask for money before they’ve done anything. Legitimate services often work on a success fee basis.
• Custom Plans: Your credit situation is unique. The best services tailor their approach to your specific needs.

Remember, while these services can help, they’re not a magic fix. You still need to manage your finances responsibly. If you’re in a pinch and need emergency funds, you might same day loan in the future or even consider getting a no credit check loan. But always aim for long-term credit health.

In conclusion, repairing your credit is a journey, not a one-time event. Whether you’re looking to buy a house, start a business, or just enjoy financial freedom, good credit is your ally. If you need immediate help, Apply for payday loans with Perfect Payday if you need emergency funds. But for lasting change, focus on understanding credit repair and making smart financial choices. Your credit score is a reflection of your financial health; treat it with the care it deserves.