When applying for a credit, if you don’t have a credit history, it is possible your credit application to be denied. This means you definitely need to start building a credit history. There are different ways to start a credit history. If you’re a student, you can get a student card from the companies that offer such special cards. On this credit card you can charge your necessities and at the same time build your own credit history.
Your credit history is important; in fact, in this day and age, only family and your time are more important than your credit history! The first time you established a payment commitment over a period of time for a purchase, you began your history of credit, and the credit bureau created your account. Payments such as the electric company, a rental agreement, a cell phone, a car payment or a low-rate credit card which you also have a responsibility to repay are not reported to the credit bureaus as a part of your credit history. They can, nonetheless, be important in your financial history.
The first step is to repair credit history inaccuracies. Check the name, address, social security number, previous addresses, open accounts, closed accounts, etc. If you find any information that is incorrect, report that immediately. The best free credit repair advice suggests writing a dispute letter to the credit bureau.
Credit history or bad credit history becomes a problem when there is a default in loan payments or repayments. This is when the loan is not paid as previously agreed by the lender and the borrower. The credit reports will be informed of the unpaid load and then this “bad credit” becomes part of the borrowers credit history and can be a huge problem for borrowing in the future.
Bad credit history as the word itself describes, the borrower has a consistent record of one or other type of problem in repayment. It means borrower has not been able to repay the committed amount on the committed day of the month, not for one month but for several months. These problems may be of any form such as partial payment, delayed payments, no payment etc. Now a day, it’s easy to end up with a bad credit history or a bad credit rating, at time not due to your fault such as perhaps your bank has not paid a direct debit on your behalf, perhaps you’ve mislaid a bill, or maybe you’ve moved address and have forgotten to inform a creditor. Bad credit rating may also be caused by factors such as defaults on payments, mortgage arrears, bankruptcy orders etc and becomes a problem when trying to get a loan. It is said that in U.K. one out of three borrowers have one or other type of credit problems.
Remember it doesn’t take much time to build bad credit history, but a lot of time to get back to the original state. Bad credit history will form a vicious circle, which can be difficult to break. The statistics show that many people are now facing the threats of bad credit history. If you have bad credit history, it is a reality you can’t gulp down, neither can keep it. For bad credit history, you will have to give a test of patience, skill, and planning. It is worth making the effort because bad credit history loans not only provide you with funding that you need but also a way to repair credit.
Bad credit history secured loan improves your credit score and credit history also when paid off in time. So clear the monthly installments in time. The loan meets all your necessary expenses despite bad credit history, a big opportunity for any borrower.Bad credit history can be created for any big or small borrower who has some discrepancy in his credit history.
This means documents of annual income, service years spent as an employee and bank statements are crucial and play a major role. Show these documents to the lender. Also make a very convincing repayment plan stating how much of money you are left with after paying for routine expenses and paying previous loans. This way lender exactly knows about your repayment capacity and offers you bad credit history unsecured loans without any collateral.