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Figuring Out Your Credit: What Can You Do

Figuring Out Your Credit: What Can You Do

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It is inevitable that you will get behind at some point in life and you will have bills that will come up as overdue. This is about the time that you think about taking out a loan to help you get by and not end up with an overdraft fee at your bank. There are many options that you can take when it comes to getting a loan, you can do a payday loan, which is a really bad idea. You can also find installment loans online, which is a convenient way to get a better type of loan.

Good Loan VS. Bad Loan

Sometimes when you get into debt and are stressing over what to do, you tend to take the first thing that you see and run with it. Perhaps someone else mentioned something to you about a payday loan and told you that it could help you solve all of your money problems. This is completely false, getting a payday loan will actually cause you a lot more problems in the long run.

They work by giving you a small loan of a few hundred dollars at a really high interest rate usually in the triple digit range. They then make a deal with you to automatically take the repayment out of your banking account. The problem is that by taking the money out of your check during the next pay period you are still going to be behind on money and then you will end up with overdraft fees from your bank because your lender is trying to take the money for the repayment. Now you will owe not only the lender the service fees for the loan but you will owe your bank for the overdraft fees. This is circling you around and around again into a spiral of debt.

Evaluate Your Credit Score

In order to get a regular loan from a bank you must have a good credit score. A credit score is basically a triple digit number that tells lenders about your borrowing history. It will tell all about how much you have repaid or even if you have repaid a loan or credit card. Everything you do financially will show on your credit report. Your score can range anywhere from 300 to a 900.

Your score is determined by credit information companies that gather all of your financial data and compile it to see how good or how bad you are doing in life when it comes to money. All of these things are sent to the CIC by your banks, credit card companies or any other lending institutions that you have used in the past.

It is important that you check your credit score and evaluate your credit report every so often to make sure that everything on it is in fact correct and that no mistakes have been made. You can do this by contacting a CIC company and paying a certain amount of money to get the report on you. You want your credit score to be at 750 and above. Anything below that and you may find it harder to get a loan or take out a credit card.

If you find that you have a bad credit score and are unable to get a loan of any type, then you will want to call a debt consolidation service to help you figure out just what you can do to fix your score and take care of any debt that you may have.

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