Are you one of the millions of Americans who suffer from a poor credit score? Whether you had difficulties making payments years ago or simply haven't had the time to build up decent credit, your bad credit score will probably make it difficult to get ahead financially.
That's not always the case, though, especially with a lending partner on your side like Atlas Credit. First, let's take a look at times when a good credit score can really make a difference.
What Is Good Credit?
Good credit is a measurement of your ability to pay back the money you owe over time. The three major credit tracking companies 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. 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. Your credit rating reflects:
- How much you use credit
- How big your debts are
- Whether you pay bills on time
- How many credit cards you have
When Your Credit Score Matters
Why is it important to have good credit? If you ever try and purchase a new or used automobile, there's a great chance that whoever you buy it from will run a credit check to see whether or not you qualify for fair payments. This isn't to say bad credit will exclude you from buying a car, but it can definitely run what you owe each month through the roof.
Looking to rent a new house or apartment? 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.
Is it time to remodel your home, buy new equipment for your small business, or pay for your big family vacation? If you ever need to pay for one of these by taking out a loan with a conventional lender like a bank, you may have much higher interest rates and tough-to-meet monthly payments. Plus, they'll probably require you 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 to always pay your bills on time and never go overboard and accumulate 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?
Although there are consequences of 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.
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 should be paid back by your next payday - or else. And the interest added on these loans is sizeable, to say the least.
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 won't have to lose an arm and a leg to pay it back.
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 could be impacted negatively by the 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. We notify you of our decision quickly, sometimes within hours. You can also apply at any of our locations throughout Texas and Oklahoma.
Submitting the application will result in a loss of a few points on your credit score when the borrower checks your credit. The drop will not last, though. You quickly will 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. We want you to feel comfortable with your decision and have a thorough understanding of 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.
When you have all these things, 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.
While it may be tempting to borrow a large sum once you realize you can finally secure it from a lender, you should limit what you actually 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.
Because remember: whatever you borrow must be paid back. By limiting the value of your personal loan, you'll get it paid off far more quickly.
Reclaim Control Over Your Money
With a simple supplement to your money clip like a personal loan, you can easily afford whatever you need to pay for - immediately. No more digging for coins in your sofa or asking relatives for money. You'll be in control, and you'll soon find yourself ahead financially.
The best thing about a bad credit personal loan is that the flexible repayment schedule can prevent you from ending up worse off than you started. Where a payday loan or a loan from your bank might hurt your credit if you don't make the steep monthly payments, a personal loan from Atlas Credit can be repaid over a 5 to 12 month period.
That means more affordable payments and less stress on your monthly budget.
So if you're in need of a quick and easy way to get a personal loan with bad credit, try a Texas or Oklahoma personal loan from Atlas Credit today! Visit us in person at any of our locations or apply online to get started.