What is Considered A Bad Credit Score?
Credit is important when applying for a credit card, loan, sometimes even a place to live. If you have bad credit and want to improve your score, first it's important to understand what impacts your credit score.
Ultimately, you have three different credit reports and scores from the three separate bureaus: Equifax, Experian, and TransUnion.
When you need money fast and have a bad credit score, Rapid Auto Loans can help as we never run a credit check. We simply ask for your vehicle title as collateral while you pay back your car title loan.
What Things Impact Your Credit Score?
There are many things that can affect if your credit score is high or low, including:
Available Credit
The amount of outstanding credit you have is also important. Keep your credit usage to under 25%. Total your balances and divide it by the total available credit to calculate your usage percentage.
Credit History
The length of credit history accounts for about 15% of your total score. This means that if you have a solid and stable credit history for many years then you will have a higher score than someone who only has had a card for a few months.
Credit Inquiries
Your history of credit inquiries and new debt is calculated for about 10% of your total credit score. This means that if you are applying for several new loans or credit cards, your score may drop even if you're approved and are making payments on time.
Payment History
Your history of payments including if you pay bills on time does affect your score. This includes any utility, phone, cable and internet, insurance, car payments, and store credit card bills. Paying your monthly bills on time and in full will increase your score while paying them partially or late will cause your score to lower.
Type of Debt
The type of debt you have accounted for about 10% of the total score. The bureau generally sees installment debt such as car or student loans payments as not as detrimental as credit card debt.
What is a Good or Bad Credit Score?
Based on the FICO Score range of 300 to 850, a bad credit score is classified as 300-57 while anything from 580-669 is fair. This is known as subprime, which is the term used to describe borrowers they believe will have a hard time repaying back a loan. While getting a bad score can be disheartening, you can repair your bad credit for your financial future.
How Having a Bad Credit Score Affects You?
When you have bad credit, you will be given higher interest rates for loans you are approved for. You also may have trouble getting a mortgage as this is a large loan and with confidence that you can pay it, many lenders may not approve you for once.
Rapid Auto Loans Can Get You Cash Fast
While it may be hard to get a conventional loan, getting a car title loan with Rapid Auto Loan is easy with bad credit or not. When you're working on credit repair, don't use your credit cards and use our title loans for emergency cash. We simply use the value of your vehicle as collateral for your loan to get your approval quickly. Start the car title loan application from your home to help speed up the process.
For questions about title loans and what is needed to apply, check out our title loan tips or call Rapid Auto Loans at 954-960-7097 to speak with one of our friendly team members today!
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