<p class="p1"><span class="s1">When you have missed payments, or simply don’t have much credit history, getting a loan can feel like an impossibility. However, there are a lot of factors to consider and not every financial institution has the same rules. Some other parts of your overall profile can also offset the perceived ‘risk’ factor.</span></p>
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<p class="p3"><span class="s1">An example of where the rules might be adjusted could be that you have been promoted since your last application. Having more spare income might help to offset your low credit score. The key is to look at your entire profile as it stands today, and not only on your credit score from before.</span></p>
<h2 class="p4"><span class="s1">Understanding Your Credit Rating</span></h2>
<p class="p1"><span class="s1">Your score from <a href="https://www.investopedia.com/terms/f/ficoscore.asp"><span class="s2">FICO</span></a> is a number score that is assigned to each person and attempts to predict how likely they are to repay borrowed funds. There are many factors that contribute to the score, but things such as not paying bills, credit cards, or loans on time or in full can greatly impact your overall rating.</span></p>
<p class="p1"><span class="s1">It is generally considered bad if your score is under 580 points. The range is between 300 and 850, where 850 is a pretty much perfect credit score. It takes into account your history, accounts, current finances, available credit and assets etc. </span></p>
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<p class="p3"><span class="s1">Because of this, one thing that can look bad is if you suddenly start applying for lots of loans over months in the hope to get approved for one. It looks suspicious, and affects your score.</span></p>
<h2 class="p4"><span class="s1">How to Get Approved and Not Damage Your Credit Further</span></h2>
<p class="p1"><span class="s1">When you are in the situation of needing funds, but you have bad credit, the pressure can make you jump at any and all opportunities. However, it is best to carefully check requirements and take a route where you are likely to get approved. Then, if you make all the repayments, you take a step to rebuilding your score.</span></p>
<p class="p1"><span class="s1">As most companies look at your income and credit history, sometimes getting approved can seem impossible. However, if you own your own car, one way to improve your chances of getting a loan is to use the car as collateral. This type of loan is <a href="https://www.1800cartitleloan.com/how-car-title-loans-work/"><span class="s2">called a car title loan</span></a> and reduces the risk to the lender by securing the loan on the vehicle.</span></p>
<p class="p3"><span class="s1">Of course, you do need to make sure you can afford the repayments (which you should do anyway). If it is very tight with the amount you need, sometimes borrowing a little extra and keeping that in an emergency account can help … should a tight month come along.</span></p>
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<h2 class="p4"><span class="s1">Some Things to Consider Regarding Your Credit Ratings</span></h2>
<p class="p1"><span class="s1">Credit scores are built on points and behaviour. Consider the follow <a href="https://www.rd.com/advice/saving-money/your-credit-score-the-magic-money-number-explained/"><span class="s2">factors to rebuild your score</span></a>.</span></p>
<ul class="ul1">
<li class="li1"><span class="s1"><b>Payment History </b>35% &#8211; Make sure to pay your bills in order to grow your score.</span></li>
<li class="li1"><span class="s1"><b>History Has Value</b> 15% &#8211; Be sure to keep older accounts active, especially lines of credit, as they give more power to your rating.</span></li>
<li class="li1"><span class="s1"><b>Overall Debt</b> 30% &#8211; Don’t max out everything and don’t close credit that isn’t used. Having an unused credit card allowance is actually in your favour.</span></li>
<li class="li1"><span class="s1"><b>Types of Existing Debts</b> 10% &#8211; They will consider the mix of credit and amount of accounts in each type. It should be balanced and look ‘normal’.</span></li>
<li class="li1"><span class="s1"><b>New Credit Applications </b>10%<span class="Apple-converted-space"> </span>&#8211; Don’t keep applying for credit all year. Instead, try to only apply for things in a 45 day window. As these will count as only one ‘full’ credit check application. If you do 3 over 6 months, it looks worse.</span></li>
</ul>
<p class="p1"><span class="s1">If you plan this approach correctly, you can dramatically increase the chances of approval and give yourself the opportunity to rebuild your rating. A good credit score is worth its weight in gold, so be sure to make your payments on time and plan properly to avoid further issues.</span></p>

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