Free 60 Second Application with 98.9% ApprovalThree Biggest Factors Leading to Poor Credit
Most people with credit related problems are eager to know how their credit got into such state. At Valley Auto Loans, we have been working with these borrowers since a long time and understand every single aspect of bad credit lending market. Over the years, while dealing with poor credit consumers, we have noticed that there are three major reasons behind someone’s bad credit history. We have also observed a common pattern among these people that almost always leads to less than perfect credit score.
The Big Picture
Many people tend to pay their bills late in spite of being aware of the fact that late payment is one of the biggest factors behind poor credit. Those who are not able to make timely payments for all their bills should try prioritizing them to keep things under control. However, unfortunately, many people end up making late payments simply due to ignorance.
High balance on credit cards is probably the next most important reason behind a bad credit. In order to have good credit, it is important to keep the credit card balance within 30% of the maximum credit limit allowed. A high credit card balance is just an indication that the card holder has high debt in the market.
Making multiple attempts to obtain different types of credit within a short span of time is dangerous in terms of your credit. Applying for the same type of loan from different sources is generally considered to be just a single instance. However, the credit score can take a severe beating when different types of loans are applied for, within a short time.
If you are looking for a car loan with bad credit, you should consider another alternative ahead of going to the tote the note auto dealers. Taking a Buy Here Pay Here auto loan will not solve your credit problem and because your payment history is not reported to the credit bureaus by these companies. As a result, you may experience the same credit related hassles when you apply for your next car.
The Solution
Therefore, it always pays to be cautious and prevent your credit from slipping out of your control. This can be done rather easily by following the three points mentioned here.
Also, in case you are looking for poor credit car loan, come to us instead of wasting your time with no credit check lending companies. Since many years, we have been the number one auto loan service provider in the country. All our customers qualify for their auto loan regardless of their credit.
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