Did you know that over 61 million
American consumers have a "subprime" credit score? A subprime FICO
score is one that is under 640 according to the three major credit reporting
agencies. Having a less than perfect (or even decent) credit score can be due
to a bevy of different reasons: job loss, health issues, divorce, or the
mismanagement of finances. For many people it's the last of those and is a
direct result of over borrowing and overextending one's budget.
Direct payday loan lenders
understand that for whatever reason a person has subprime credit, we all make
mistakes. They also know that bad credit comes with a price which can mean
paying higher interest rates on credit cards, mortgages and car loans, as well
as being turned down for credit and even the loss of employment opportunities.
That is why they don't look at a person's credit score when applying for a
payday advance loan. Taking out a short-term loan for a cash emergency is fine
and will not affect your credit but you still need to consider how you are
going to rebuild your credit score and get out of the sub-prime category to
afford yourself more financial borrowing opportunities in the future.
The first step is knowing where you
stand in regards to your FICO score. You can do this by ordering a copy of your
credit score from the three major credit bureaus: Transunion, Experian, and
Equifax. Each American consumer has the right to one free copy of their report
every year. You can request your report either online or calling directly.
Unfortunately, you will have to pay to get your FICO score with your report but
it's worth it because it is what defines your credit worthiness. The three
reports may vary depending on the bureau and will change over time as your
credit history changes. Once you receive all three, go over them individually
to check what has been reported and to make sure everything is accurate.
Mistakes on your reports can be costly and affect the future of your credit so
it's vital you check to make sure everything it correct. If you find something
that you feel is not accurate, it is important that you immediately dispute it
with that particular bureau. With your report should come a form that allows
you to do so.
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