Looking for a small loan but have bad credit? We’ve got your back.
What is bad credit?
Bad credit describes an individual’s credit history when it indicates that the borrower has a high credit risk. A low credit score signals bad credit, while a high credit score is an indicator of good credit. A credit score of less than 600 is generally considered to be a bad credit score. Creditors who lend money to an individual with bad credit face a greater risk of that individual missing payments or defaulting than creditors who lend to individuals with good credit.
Individual lenders and card issuers set their own guidelines, but here’s how the categories generally fall under FICO (the most commonly used credit scores throughout America):
- 800+ is exceptional.
- 740 – 799 is very good.
- 670 – 739 is good and represents the median credit score range.
- 580 – 669 is below average.
- 579 or less is poor.
Where can I find out my credit score?
FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your FICO score.These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.
It is very important for you to monitor your credit report. Each credit bureau provides the opportunity to obtain a free copy of your credit report annually. You can contact:
- TransUnion: Visit www.transunion.com, call 800-888-4312 or mail in a request to TransUnion, 2 Baldwin Place, P.O. Box 1000, Chester, PA 19022.
- Equifax: Visit www.equifax.com, call 800-846-5279 or 866-322-3162, or mail in a request to Equifax, P.O. Box 740123, Atlanta, GA 30374.
- Experian: Visit www.experian.com, call 888-397-3742, or mail in a request to Experian P.O. Box 919, Allen, TX 75013.
- Free online credit reports are available at: www.annualcreditreport.com
Why do I have bad credit?
FICO scores your credit by the following 5 components – derived from your credit history, and each component contributes an amount to the total based on its importance:
- Payment history: 35%.
- Amount of debt: 30%.
- Length of credit history: 15%.
- New credit: 10%.
- Credit mix: 10 %.
Learn more on what affects your score and how to improve it here.
*NOTE: Your credit score could well be inaccurate! A whopping one in five Americans are shocked to find errors on their Credit Report and 79% of consumers who disputed credit report errors were successful in removing them.
How does my bad credit affect applying for a loan?
Your score determines how much you can borrow, and what rates you can get. So, whether you are buying a new car or taking out a credit card, it pays to have a strong FICO score. It’s up to individual lenders and insurance companies who use these scores to decide which scores demonstrate an acceptable level of risk. They use scores in a variety of ways, too. These include:
- Determining the interest rate they will charge for a loan, or in the case of an insurance company, the discount they may offer on an insurance policy.
- Deciding whether to extend credit, how much credit to approve, whether to increase (or lower) a customer’s credit limit, or even to close a risky account.
At TLC, we recognize that sometimes bad things happen to people. Unlike a bank, we want to listen and try to help you get the money you need to achieve your goals.
Bad Credit Loans from TLC
Even with bad credit, Total Loan Company’s short-term multi-pay loans are a perfect way to respond to unexpected emergencies such as car repairs, medical expenses, or travel.
When you take a short-term loan with us, the interest rate on your loan will depend on several factors including the type of loan you get, and your credit history. Will the loan interest rate stay the same throughout the life of the loan? Every loan from TLC has a fixed rate, which means your rate will not change for the entire term of your loan.
Once you have applied, the approval process is fast and easy; Once we receive your application, our customer service representatives will contact you to verify your income and employment, you will sign your loan agreement electronically and be all set to receive your funds. Once you have signed online, you’ll receive your loan in your bank account on the next business day.
And don’t forget, YOU ARE WITH A RELIABLE COMPANY: