BAD CREDIT OR GOOD CREDIT?How is your Credit Rating?Do you have a good history? Or bad credit? Perhaps you have bad credit from credit cards? from a personal loan (secured or unsecured) you never repaid? from a business loan that just didn't work out? from motorcycle or auto finance? Whatever happened in your past, the end result is the same : your past credit affects your future credit. Don't think that if it is a small amount of money, or because you had some significant event in your life that genuinely stopped you from paying your debts, that it makes any difference. The best indicator of future behaviour, is past behaviour. Basically, if you have done it before, chances are pretty good that you will do it again. And if you apply for credit, the lender will check up on your past behaviour. So it pays to make things right. ABACUS FINANCE vs BAD CREDITAt ABACUS FINANCE, we will do the same checks as everyone else. The difference is that we will look at each application individually, to assess if we can help you, if you have a poor credit history.No guarantees of loan approval - we are not saying we give guaranteed bad credit loans - but because we do not use an automated approval system, we will at least consider your application on its individual merits. The reality is that if you are looking for bad credit loans, your options will be very limited. Less and less lenders are willing to take a chance on a bad credit personal loan. Maybe - if it is at all possible - it would be worthwhile for you to take the time and make the effort to try and repair your poor history, pay off some debt, and look for finance again when your past is looking a little better.... HOW IT WORKSEvery time you borrow money - perhaps a personal loan or mortgage - or apply to hold an account - such as with your power or telephone company - a record of your application is kept on a credit database.Every time you do not pay your debts as agreed, a record is also kept of this. This builds up a history of your financial behaviour commonly known as your Credit Rating. YOUR CREDIT RATING IS PRECIOUS! YOU SHOULD DO EVERYTHING YOU CAN TO PROTECT IT.
If your history shows a number of times when you have not paid your debts you will find it increasingly harder to get cash when you need it - even if you have only defaulted on small loans - it all counts against you. Each lender will check your rating, and use their own criteria to decide if you are a "risk" and if they will loan money to you. If you have a bad credit history you may still get a loan, but the fees and interest rate will generally be higher. - Veda Advantage holds the largest such database in New Zealand and Australia.
EVERYONE MAKES MISTAKES...If you have a poor history, then there are some ways to improve your situation:1. be up front and honest with prospective lenders 2. own up to past debts 3. put in place a repayment plan We all have mistakes in our past, but it is how we deal with them, that is the greatest indicator of how we may behave in the future. CREDIT AGENCIES MAKE MISTAKES TOO!It is important to note that sometimes lenders and credit agencies also make mistakes. If you have a problem and you think an error has been made, there is a lot of advice available to help you fix the error.Just be aware that each country, and each company, you deal with, will have different rules. And there is not just one way to solve this type of problem. There are many Credit Repair Secrets out there - you may just have to search until you find what works for your situation. Equally, if you have made mistakes there are ways to start fixing your credit rating that are much faster than the many years it can take for your mistakes to disappear from your credit history.
You may choose to do it for yourself with some helpful guidelines, or may be more comfortable getting some professional assistance.
At Abacus Finance, we specialise in small personal loans for the smaller things that make our lives better. Apply online - no obligation application with fast decision times.
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