When an individual applies for a loan, it’s in their best interest to present the most credit worthy application possible to the lending company’s loan office. There are several ways for a potential borrower to maintain good credit.
Personal Loans with Bad Credit
The single most important factor used by lending company’s to determine a loan applicant’s credit worthiness is the applicant’s payment history, which is reported on his or her credit report. Lenders consider borrowers with late payment or no payment histories high-risk borrowers, and this will negatively affect the borrower in several ways: they’ll pay a higher interest rate on their loan, qualify for fewer loan programs, limited loan amounts, and shorter terms. That’s why borrowers should ensure the information reported on his or her credit reports is accurate.
There are three main credit reporting agencies: TransUnion, Equifax, and Experian. Anyone interested in applying for a loan should first check his or her credit reports to ensure they are accurate and presentable to a loan officer. If they are reporting any inaccurate information, borrowers can and should dispute the claims with the agency. They’ll provide borrowers with their step-by-step instructions on how to resolve any issues.
Correcting a credit report can be a time consuming process. Applicants shouldn’t wait until they desperately need a loan to ensure their credit history with any or all of the big three credit reporting agencies are accurate.
Following these simple instructions can save borrowers a great deal of money over a lifetime.