When struggling with your finances, the smallest little bill could be enough to stretch your budget to breaking point over the course of the month. However, with a poor credit score, it is a common misconception that you will not be able to apply for alternative finance in order to help. This is not the case. In this article, we will be providing you with advice on your credit score as well as the loans that you can still apply for in a financial emergency despite having a poor line of credit.
Understanding Your Credit Score
When looking at your credit score, three main reporting bodies are responsible for showing your credit score. These are Equifax, Experian and TransUnion and are all on hand to show you your credit score using the Fico System. When looking at your credit score through these reporting systems, several bands are linked to positive credit scores. These are listed below:
FICO Score Ranges
580 or Less
How To Build Credit For Those Starting Out
If you are a young person just starting out, you may find that you have next to no credit history. Though this may be a problem when it comes to applying for a mortgage or a loan in the future, it can be fixed by working to build up your credit score. To help you get started, we have listed some of the ways that you can build credit below:
- Open Up A Credit Card
- Apply For A Credit Increase
- Register To Vote
- Manage Any Finds You Have Well
- Set Up Direct Debits For Car Or Phone Payments
How Can A Poor Credit Score Be Improved?
If you have a line of credit at this time but it is far off of being good credit, this can prove problematic when it comes to applying for financial aid in the future. Though there are several bad credit loans and no credit check loans for you to use should you need them in a financial emergency, it is important to take steps to better your credit score as this will improve your chances of being approved for loans in the future. Your credit score can be improved by checking for incorrect information as well as paying back any outstanding debt that you have. Though this is a slow process, this will have long term positive effects on your credit score.
Can You Apply For A Loan With Poor Credit?
If you have poor credit but find yourself in need of financial help, it is still possible for you to apply and receive the help that you need. Not only are their loan providers out there that specialise in loans for those with poor credit, but applications can be filled out online, providing you with a quick response that you need. Should you be accepted, the money could be within your account in just a few days.
Whether you have no credit at this time or your credit score is poor, there is no reason why you are unable to gain access to the additional funds you need to get yourself out of financial difficulty.