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If you're worried about your credit score, you're not alone — approximately 16% of Americans have a bad credit score, making it harder to get ahead financially. Whether you had difficulties making payments years ago or simply haven't had the time to build up a decent credit score,  a bad credit score has some serious repercussions. For example, you may have fewer chances of securing a home loan or achieving optimum insurance premiums. Your credit score may even impact your employment opportunities. 

Even though "perfect credit" is something only 1.2% of the population can currently claim, improving your credit score is certainly possible. By partnering with a reputable company like Atlas Credit, you can strengthen your credit and increase your chances of reaching your goals. Learn when a good credit score can really make a difference and how you can improve your situation.

What Is Good Credit?

Good credit is a measurement of your ability to pay back the money you owe over time. The three nationwide credit tracking companies — Equifax, Experian, and TransUnion — give everyone who has borrowed money a score ranging from 300 to 850. People who rank near the top have the best credit, and they get there by paying off their balances quickly. People with poor credit at the bottom of the scale may have defaulted on what they owed in the past or may not have made consistent payments. There are several types of credit scores, but most lenders use the FICO scoring system to determine the result of your credit application. Here are just a few reasons you need to care about your credit score:

  • Bad credit can prevent you from borrowing in the future. 
  • If you do borrow money, you will pay a higher interest rate, which can lead to accumulating more debt.
  • You may have to pay a deposit when you sign up for utilities in case you default on your bills.

Who Decides if a Credit Score Is Bad?

The credit tracking companies take into account every transaction you have made in adulthood. They use your past actions to create a bigger picture and determine whether you are likely to pay off your debts in the future. Several factors impact your credit score, such as: 

  • How much you use credit
  • How big your debts are
  • Whether you pay bills on time
  • How many credit cards you have
  • The amount of time your loan accounts have been active 
  • New credit applications 
  • Whether you have a history of bankruptcy, foreclosure or bankruptcy

When Your Credit Score Matters

While bad credit may hinder your chances of getting ahead, a non-existing credit history could potentially be worse. If you ever try to purchase a new or used automobile, there's a great chance that whoever you buy it from will run a credit check to see if you qualify for fair payments. This isn't to say bad credit will exclude you from buying a car, but it significantly increases what you owe monthly.

If you're looking to rent a new house or apartment, your credit score will also impact your rental success. While many apartment complexes and property managers will take a hard look at your credit score before they accept your application to rent, they'll still be somewhat lenient if they're desperate to fill empty homes. However, if they receive applications from other potential renters who have better credit scores than you do, they'll go with the higher number every time.

Remodeling your home, buying new equipment for your small business, or paying for your big family vacation are all large expenses. Taking out a loan with a conventional lender like a bank helps you settle these costs, yet you may have much higher interest rates and tough-to-meet monthly payments. Plus, they'll probably require you to pay back that loan ASAP.

This is all to say that your credit score does matter in most cases in life. It's up to you to be a responsible borrower and user of credit. Make sure always to pay your bills on time and avoid accumulating a mountain of debt — trust us!

Why Credit Is Important

Good credit opens doors. While you may not be in the market for a new home or a new vehicle today, you probably will be down the line. Good credit shows lenders they can trust you to pay back a loan. You need to prove you are a good risk to secure the funding you need.

Credit history offers a snapshot of your past behavior. Of course, it does not take into account things like job loss or tragedies that can occur in life and impact your ability to pay the bills. That is why Atlas Credit considers more than just your credit history when granting loans. We look at the big picture and whether you currently have a decent job.

Not every company does this. We are relatively unique in our embrace of those with bad credit — but if you do want to address your bad credit and turn it around, we are ready to assist.

Can Bad Credit Be Fixed?Image title

Although there are consequences of a bad credit history, you can improve your score. At Atlas Credit, we provide personal loans to people with bad credit throughout Oklahoma and Texas. When you borrow money from us, you receive the opportunity to show you can pay back that money on time.

We structure your monthly payments to fit your financial obligations. You can show lenders you are responsible by keeping up with the payment schedule. Repairing your credit score takes time and effort, and you can use Atlas Credit's loan to help you. Some other tips to help you repair your credit score quickly include:

  • Increase your credit limits: While it's not always possible to increase your limit if you have a history of bad credit, it's an opportunity worth investigating. Your credit utilization ratio impacts your score, and a higher limit will improve the ratio, resulting in a better score.
  • Settle collection accounts: If your accounts have been sent to collectors, put these payments at the top of your priority list. Lenders will be less likely to approve future credit applications if you have collections listed on your credit reports.
  • Look into credit builder loans: By applying for a credit builder loan, you'll receive a small amount of cash upfront. You'll then have the opportunity to make timely repayments to prove yourself as a responsible borrower. At the end of the loan term, you will get the rest of the money and the lender will report your payment record to the main credit agencies.
  • Apply for a secure credit card: When applying for this type of credit card, you'll need to deposit a lump sum. Making on-time payments will help you to improve your credit score.

What Is a Personal Loan?

First of all, a personal loan from Atlas Credit is nothing like a payday loan. While payday loans are also available for people with bad credit, the repayment plan for a payday loan is harsh by comparison.

It's right there in the name. A payday loan requires you to pay back the amount by your next payday. The interest added on these loans is sizeable, to say the least, and failing to make this repayment results in financial penalties.

Personal loans, on the other hand, are like a direct infusion of cash to your finances that can be paid back at your leisure. You won't have to offer up your home for collateral, and you'll have more manageable monthly payments. 

Does Applying for a Personal Loan Hurt My Credit? 

Applying for the loan will not hurt your credit in the long term. The only way your credit will be impacted by a personal loan is if you fail to make your payments on time. 

With Atlas Credit, filling out an application takes just a few minutes when you apply online. Our team will then verify your employment details and banking history before deciding. We notify you of our decision quickly, sometimes within hours. You can also apply at any of our locations throughout Texas and Oklahoma.

It's important to note that you will lose a few credit score points when you apply for this loan — but this drop will not last. You will quickly make up for it when you receive your loan and begin making on-time payments. 

Can Getting a Personal Loan Hurt My Credit? 

As long as you stick to the repayment schedule, a personal loan won't hurt your credit. If you pay back the money on time each month and don't forget a payment, then your credit score will rise. Personal loans provide the chance for you to prove your responsibility and willingness to repay your debts. 

Even if you have a history of defaulting on debts, your future actions can reverse your credit score. Getting a personal loan with lousy credit sets you up to improve your score — and Atlas Credit wants to help. We approve lots of borrowers who have bad credit to help them better their situations. 

How Can a Personal Loan Help My Credit? 

So what is the benefit of obtaining a personal loan? Beyond getting the money you need to pay for bills or expenses, you also can take advantage of the opportunity to rebuild your poor credit with a personal loan. You can use the money to assist you with: 

  • Paying emergency medical bills
  • Covering car repairs
  • Getting current on mortgage payments

By taking out a personal loan, you can wipe away debts that have built up during a difficult period. Maybe you were laid off, or you had to assist a family member with their expenses and fell behind on their own. When you take out a personal loan, you get a better interest rate than you do on a credit card. You will have less debt to pay off in the long run.

Should I Get a Personal Loan? 

Getting a personal loan is a personal choice. You should feel comfortable with your decision and thoroughly understand what you need to do to rebuild your bad credit when you get a personal loan. Keep these things in mind

  • You must make on-time payments each month to raise your credit score.
  • You must budget for your monthly loan payments. 
  • You must have a steady source of income, such as a regular job, to receive a personal loan.

If you are employed and willing to take on these commitments, you are likely to receive approval on your loan from Atlas Credit. Borrowing money and repaying it will increase your credit score, and when you do that, you also can qualify for bigger loans in the future, such as mortgages or vehicle loans. 

Apply For a Personal Loan Online

Borrow Appropriately

While it may be tempting to borrow a large sum once you realize you can finally secure it from a lender, you should limit the amount you decide to borrow. The size of your bad credit personal loan should be equal to or just slightly more than the exact amount you need to get by. If you need it for your monthly expenses, consult your budget to determine how much that will be.

As with all loans, the amount you borrow will eventually need to be paid back. By limiting the value of your personal loan, you'll get it paid off far more quickly.

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