Unfortunately, there is no credit fairy flying around ready to tap anyone’s rating and make it magically appealing. Not even a large loan can solve all of your problems.
The key to repairing your credit is a combination of short-term help and quick proactive measures.
Repair Steps Prior to Applying
Those in need of loans without credit check are best served when they take these additional steps to repair their credit before they apply for and gain a loan:- Make a plan to get your credit card balances down to at least 30% of your limit. That will probably mean not using those cards for awhile.
- Double-check your card limits. If they have been raised, then your credit score might go up. Make sure that the credit bureaus know about your higher limits.
- If you need to use a card, use an old one. Dormant cards do little for your credit rating. Pull out a card that you haven’t used in awhile. It will probably have a low balance. Some cards can get lost in your wallet when they haven’t been utilized for a long period of time.
- Verify your correct credit history. Look for incorrect charge-offs, collections and other negative actions that might have been incorrectly attributed to you. Check also to see if any “unpaid” accounts on your report have actually been paid.
Explain Reasons behind Bad Credit
Rather than dream about a magical solution (a huge no-interest loan) consumers need to take practical steps. While shopping for reasonable short-term solutions to cash flow problems, improving credit score should be in the back of their mind.
Now, a bad credit score does not mean that a person is a scoundrel. It could just mean that life and their finances have gotten away from them.
Search for a lender that will not hold your low score against you, will give rapid approval, has a history of helping others and offers reasonable terms. You usually tell the good lenders from the bad, by reading closely the language on their websites. If they make preposterous claims, such as microscopic interest rates or extra-long repayment terms, they are probably too good to be true and might have a crippling catch in their agreements.
We can steer people with bad credit to a place where they regain control of their personal finances. Acquiring a loan to pay off debt is only one part of the credit-rebuild process. People should take the initiative to repair their credit score on their own, and if they follow a few simple steps, they can see rapid results.