You have bad credit. You need a substantial infusion of cash. Where do you go? Finding someone who is willing to extend a long-term or installment loan to you can be a challenge. However, having a verifiable income that will allow you enough cash left over from your monthly expenses to pay such a loan, it can be done.
Which credit score is bad? This is a really important question, since “bad” can correspond to different numbers depending on a huge range of factors. According to financial experts, at present, you need to have a score of at least 580 to secure a deal. Still, given the property market plunge and the unstable economy, lenders prefer borrowers with a score of 660 to 680 or higher.
Your debt to credit ratio is directly tied to the amount of debt in proportion to your balances on your Revolving credit loans. What that means is that installment loans nashville tn, don’t hold nearly as much weight as it pertains to your credit score… as long as you make your payments on time with these that is. To figure out what your ratio is real simple. All you need to do is add up your total credit limits, write that down. Then add up what you owe on each card, write that down. Then divide your total balance into your total allowed credit limit and that is your debt to credit ratio.
Your FICO credit score controls your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.
Preserving your FICO score, and improving it, is not difficult, but it may take time. Despite the books, courses and consultants offering to help you improve your credit score, only 3 basic steps come into play. Here are the 3 steps everyone must use to earn, preserve and improve their score – based on three credit examples.
Most traditional lenders, and other lenders, offer two types of loans, secured and unsecured. Unsecured loans are called personal loans or signature loans. Secured loans are those in which you offer valuable property as security to back up the loan. Secured loans are usually called home equity loans, line of credit on equity loans, and other similar epithets.
If you want to get off the revolving debt bandwagon, consider downsizing and driving a less expensive car. That way, you can pay off the loan and still have something to sell at the end of your time of ownership.