The concept of quick cash loans is one that has gained very high popularity with most people taking advantage of the flexible nature of the loans. Financial emergencies are unavoidable, and not a lot of options are available at most times. The uncomplicated process of applying for an immediate cash loan is one reason they make for viable solutions in dire circumstances. Another reason most people turn to fast cash loans is due to poor credit scores. If you are asking for a loan for the first time, you may not be clear on how to check your credit score or what the figures mean.
How to Check
One misconception to clear up is that a credit report is not the same as a credit score. A credit report is a file comprising of all your financial information such as mortgage payments, credit cards, and other loans. On the other hand, a credit score is a three-digit-number derivation of a mathematical formula based on the information provided in the credit history. You can get a credit report for free, but you have to pay to get your credit score. In Canada, you can use either one of the two national credit bureaus to get your credit score.
What it Means
Credit scores oscillate between 300 and 900 with higher scores increasing the chances of getting loans. Of course, lenders have different qualifications when looking at credit scores, but typically a score of 650 or more is not a bad one. A score of 760+ is viewed as excellent credit, and an individual would have no problem securing a loan; fast cash or otherwise. A score below 650 is fair while below 550 is poor, making it nearly impossible to get a conventional loan with lenders. However, cash loans online won’t present much of a problem even with such scores. Keep in mind that you may get different scores depending on the bureau.
Even though you can get fast cash loans with a bad credit score, it is essential to understand what determines these scores so that you can take steps to improve yours. One clear indicator that credit bureaus look at is the payment history of an individual. Whether it is a business loan, mortgage, or car loan, timely payments will add points to your credit score. A properly established credit account history is another element that will tilt the scales in your favor in regard to your score. Be careful about opening and closing accounts, especially when you intend to get a loan in the immediate future. Carefully monitor credit card usage to avoid going over the limit because the balance on these cards impacts your score. It is possible to use quick cash loans to avoid ruining your credit scores any further like say, using one for emergency travel instead of maxing out your cards. For more information, please check out the Lendgreen website.