Everything You Need To Know About Bad Credit
Are you afraid you might have bad credit?
Even worse, is your low credit score preventing you from accessing the financing you need? Are you not sure how credit is calculated, or would you like to know how to improve your credit score? Don’t despair – there are plenty of answers below!
Read on to learn more about how bad credit is calculated, what you can do about it, and most importantly, how Lend for All can connect you with the money you need when you need it most – even with bad credit.
What is a Credit Score?
Lenders use credit scores to evaluate the risk of lending to one party over another.
A credit score is based on a credit report, and those credit reports are generated by credit bureaus. People with the highest credit scores are considered by lenders to be the most likely to pay their loans back in full and on time.
For this reason, those with good credit scores have access to the best interest rates.
What is a Good Credit Score?
Generally speaking, in Canada credit is scored on a scale that goes from 300 to 900. Anyone with a credit score above 700 is considered to have “good” credit. Anyone with a score of 800 or higher is considered “excellent,” or even “perfect” in some cases.
However, most people have credit scores that range from 600 to 750, and some consider the “magic number” to be a credit score of 650. Anyone with a score above 650 will likely be able to qualify for a standard loan. Anyone with scores below 650 might have some trouble.
On the other end of the spectrum, those with scores below 575 are considered to have “bad credit.”
What If I Have Bad Credit?
A common problem faced by someone with a bad credit score is a difficulty getting a loan when they need it. Traditional lenders like banks are typically more conservative, rarely willing to do business with borrowers that have low credit scores.
Luckily, there is an entire industry of alternative lenders willing and able to help you out! This is why Lend for All is such a valuable tool. Its artificial intelligence-enhanced lending platform can help connect you with the right lender for your situation, even if you have bad credit.
Lend for All has put together an automated process that takes the complications out of shopping for a loan. Instead of spending time applying to multiple lenders, Lend for All has gathered a group of lenders that all bid for your business. After just a few minutes spent filling out a form, you’ll be matched with group of potential lending partners.
With Lend for All, you can quickly, easily and safely take your pick from a variety of options. You’ll choose the one that works best for you, and that lender will put the capital you need in your hands right away.
How Do I Improve My Credit Score?
There are a number of ways you can improve your credit score. In fact, it’s such an important topic that we wrote an entire blog post detailing how to repair your credit. We would encourage you to check it out. But if you want the summary, it can be boiled down to a few points:
- Get a copy of your credit report to identify weak points
- Dispute any errors you may find in the report
- Acquire a credit card if you don’t have one in order to build credit history
- Create a repayment plan for your outstanding debts
- Consolidate any outstanding debts when appropriate
You should also avoid doing things like consistently missing payment deadlines on your existing credit cards, maxing out your credit cards for long periods of time, or filing for bankruptcy.
Is Getting a Bad Credit Loan Safe?
It’s true, in the universe of alternative lenders, some are better than others, and some you should avoid completely. You might find that certain lenders charge ridiculously high interest rates. Others might have plenty of hidden fees or unfair penalties structured into the heart of the contact.
Luckily, all of the lenders that we partner with at Lend for All are reputable, fair lenders you can trust, otherwise we would never do business with them. At Lend for All, our main priority is to help people access financing when they need it most, particularly if they are having trouble getting a loan from a traditional lender like a bank.
Find a Personal Loan Right For You
Interested in securing a personal loan? Even if you have bad credit, we can help!
Check out our Personal Loans page, it’s where you’ll find the solution to your financial problems when you find yourself grappling with life’s unexpected expenses. Because Lend for All is here to help, simply contact one of our friendly and experienced representatives if you have any questions whatsoever.
We’ll help guide you through the process and connect you with the financing you need.