Debt Management 101: What is Bad Credit?
Having a bad credit means you have less than perfect credit because of unpaid or delayed repayment of past loans and other financial obligations.
Your bad credit affects multiple areas in your life–your ability to borrow money, to get a job, and to apply for utilities. It is because your credit history is the measure of your creditworthiness or your ability and willingness to repay your debts. So, if you have a bad credit, it means you have a low credit score or you are not creditworthy.
You may have a sparkling clean repayment record on your credit cards, but if you missed your payment to your mobile phone provider, it could lower your credit score. Most banks turn down applications from people with bad credit. Other lenders add hefty interests and charges on bad credit loans. So, if you have a poor credit history, a bad credit loan is one of your options to borrow money and improve your credit score.
Here are some tips when managing bad debts:
Beware of bad credit loans with hefty interests, even if you are desperately in need.
Yes, you can avoid eviction and fix your credit history especially if you have been declared bankrupt in the past. Stop debt collectors from continuously harassing you, and negotiate with them instead. Settle your credit card debt and other personal loans that have been draining your monthly budget. Most of all, you can sleep soundly knowing that there are no phone calls and threatening letters that would pop out anytime. How? You can apply for bad credit loans.
At NSW Mortgage Corp, we have better loan options for people with bad credit. You can use our bad credit loans to pay for your bills, avoid judgments and defaults and pay for mortgage arrears.
Work on rebuilding your credit
Every time you apply to borrow money, the way lenders look at your application depends on your credit rating. So, what is bad credit? It is an obstacle to getting a favourable loan.
Lenders use your score to quantify your risk as a borrower. You are more likely to pay back the loan if you paid back on time and in full, you have a manageable load of debt and you have a long history of responsible borrowing. They also take into account the type of credit you carry. So, your payment history, amount of debt, type of debt and the age of credit matters when determining your creditworthiness.
You can utilize your bad credit loans to access cash when you need it most and to prove that you are credit worthy. Even with a poor credit history, you can still borrow money and show the lender that you already know how to manage your finances wisely.
NSW Mortgage Corp specializes in refinancing mortgages across the country. We have in-house loan experts that offer flexibility and access to clients in a speed which is unavailable to other refinancing companies. Tap into a wide array of loan products to help you meet all your financial needs, regardless of your bad credit score and financial situation.
Want to know more answers to your questions about debt management and bad credit? Enquire at NSW Mortgage Corp now or call us on 1300 137 778.