Your credit score is important, do you know the reason? Your credit score actually shows the credit history of a borrower. Besides, most of the lenders check the credit score of an individual before issuing a loan or a credit card. Hence, you need to maintain your credit rating well to avoid rejection from the lenders. What causes a bad credit rating? Is it your question now? Have a look below to know in detail about the causes for bad credit rating.
- Late payments: Almost 35% of your credit score depends on your credit history. In fact, if you make your loan and credit card payment on time, your credit score will be good. Similarly, if you fail to make the payments on time, you credit score may decrease.
- Filing Bankruptcy: Bankruptcy can affect your credit score in a very bad way. Did you experience bankruptcy already? Don’t worry, stay relaxed. There are some ways to improve your credit score even after experiencing bankruptcy. Apply for a credit card and pay all your bills on time to improve your credit score. Believe me, this will definitely work.
- Choosing Wrong Credit Cards: Choosing the wrong credit cards can also affect your credit rating. Check the interest rates, repayment options and credit limit properly before taking a credit card.
- Paying Minimum Every Month: There are some people who think that paying minimum is enough to maintain their credit rating well. If you have a similar opinion then you are totally wrong. Remember, paying minimum every month can ruin your credit rating. To avoid this, make the complete payment every month.
Do payday and short-term loans affect my credit rating?
Payday loans and short-term loans do not affect the credit rating, because most of the lenders in the present days generally don’t run a credit check while offering this type of loans. However, this may differ from one lender to the other lender. In fact, making your payment on time can improve your credit rating.
Can I get a payday or short-term loan if my credit rating is bad?
Yes, there are some lenders who offer payday and short-term loans to the people with bad credit rating. But, only the candidates with regular income are eligible to apply.
How to find the best lender for bad credit loans?
With the increase in demand for payday and short-term loans, a lot of lenders have started offering them. But, the ROI of all the lenders will not be same. Some may offer these loans at a reasonable ROI, while some may charge very high ROI. Compare the ROI and client reviews of lenders in UK to understand who is best among them.
Did you ever hear about LoanPig – bad credit loans platform in UK? This is the first option for most of the people in UK, when it comes to payday and short-term loans because of their flexible repayment options and attractive ROI. The main advantage of choosing LoanPig is that they are direct lenders as well as broker.