How Do I Know If I Have Bad Credit

"How Do I Know If I Have Bad Credit"

How To Determine If You Have Bad Credit History?

Many people are still unaware of how credit report works or what it really is. Basically, a credit report is collected information on all your credit history. It is a record of all the credit you’ve secured for the past years. It also contains any severe infringements cases that you’ve dealt with and any defaults given to you. It pays to remember that each time you get a credit, an inquiry is added on your credit report. This includes even the simplest transaction of availing a credit card. Moreover, it is likely that when you apply for a particular loan, your lender will examine your credit score. This practice is for determining whether you are qualified to be given a loan or not. The lender will make a decision according to the number of infringements and defaults written on your credit report. Generally, this procedure is carried out to find out if you are a risky borrower or not.

Impact of Bad Credit Report

Now that you know the basics of credit reports, it’s time to determine the effect of having a bad credit report. A bad credit report can damage your capacity to buy a property, have approved credit cards, and almost any form of credit applications. It will tarnish your credit-worthiness, thus you’ll often find yourself dealing with rejected credit applications.

Checking for Bad Credit Report

Having bad credit can branch out from simple reasons such as an unsettled bill. Good thing there are a lot of companies that offer free credit score assistance. They give valuable advice on how to revamp or enhance your score, in order to get your loan approved.

But before you can ask help from anyone, you need to know the current standing of your credit report first. There are many sources that offer free credit score report and these are:

  • Credit Savvy – Experian Rating
  • Equifax
  • Credit Simple – Dun and Bradstreet score
  • Get Credit Score – Equifax Score
  • Finder – Equifax Score


Credit companies examine credit scores or ratings from different credit reports provides since not all providers follow the same criteria for rating. For instance, the Equifax score and Experian rating above. With this, there’s a huge possibility that your credit score will vary according to which provider your lender is working with.

If you’ve already checked your credit rating but your loan application is still rejected, you might want to check other providers to find out if they logged any debts in your credit report.

  • Other Credit Report Providers
  • Experian Rating
  • Equifax Score
  • Dun and Bradstreet Score

Being one step ahead of your lenders before you submit your loan application is one of the cleverest ways you can undertake before you decide to secure a loan, especially if you have bad credit. It can increase your chances of getting approved and allow you to come up with a better offer when it comes to loan repayments and interest rates.

Monitor Your Credit Report

Tracking the standing of your credit report is one of the smartest things you can do to make sure that you are not prey of identity theft. Usually, even if thieves have zero ideas about your credit card info, they can utilize your name to secure loans and default during payments. Furthermore, monitoring your credit report can assist you in determining if the debts under your name don’t belong to you and have your credit rating and identity fixed immediately.

Fixing Malicious Credit Rating

You can ask help from a credit repair company or contact the company personally to remove the false entry in your card. The thing is, it is rare to detect malicious financial activities on credit files. These include:

  • Duplicate entries
  • Wrong information in legitimate entries
  • Identity theft or fraud
  • Other individual’s entries because of identical or same names

If you aren’t confident enough to personally reach out to the company that has recorded the debt against your name, then you can always depend on a credit-clearing company. Just be wary of the expensive costs that come when working with this company. However, there are plenty that offers free service, just ensure that you read the fine print.

Improving Your Credit Score

If you have a low credit score now, you can always turn things around and improve it. However, don’t expect that you can do it overnight since it takes a lot of time. Below are several things you can practice to enhance your credit score:

  • Settle your bills right on schedule
  • Examine your credit report carefully
  • Don’t apply for loans if you don’t badly need it.

Loans for Individuals with Bad Credit Report

Borrowers with bad credit reports don’t have to endure loan rejection from various lenders or credit providers. This is because of the latest loan scheme that offers them a chance to secure the money without going through credit checking. These types of loans for individuals with bad credit are offered by reputable leading companies in the industry. They understand that most people are simply victims of tight financial problem and sometimes it is unavoidable to have bad credit. These lenders will perceive your finances in a realistic manner. They work hard to guarantee that all borrowers will be given equal opportunity to obtain a loan, regardless of their credit rating.

Moreover, these lenders examine your present financial situation to determine if you are worthy of loan approval or not. For them, the most essential factor is how you’re going to pay back the loan. Their vision is to give each borrower a second chance, that’s why they’re making it extremely easy to apply for bad credit loans. You can borrow as much as $300 – $10,000 whenever and wherever you want. On top of that, you can even process your loan application on your phone. No need to process complicated and stressful documents, no need to wait in long lines, and you don’t have to leave your home. That’s how easy and convenient bad credit loans are.

Do They Perform Credit Checks?

Yes, lenders of bad credit loans still carry out credit rating checks. However, you can guarantee that it won’t affect your loan application. This is because they don’t only focus on your credit rating. Instead, they look at how you’re going to pay back the loan – after all, it is the most important factor. They will also examine other aspects such as your bank statements, employment status, and daily income. This will determine if a cash loans bad credit is ideal for your personal circumstances. With this, you don’t have to worry about anything – especially your unfavorable credit score – when obtaining a loan.

Who Are Qualified to Apply?

Bad credit loan providers specifically designed their credit scheme to be simple. If you are planning to apply, all you have to do is to be eligible for these criteria:

All borrowers must:

  • be more than 18 years old
  • have a source of income for the last 90 days in their personal bank account
  • have an active email address and mobile phone number
  • setup internet banking

What Documentation Should be submitted?

Just like any credit application, bad credit loan providers also ask for documentation. The only difference is, this specific loan scheme is simpler and easy to comply. Lenders never demand for unnecessary papers. Belo is the documentation you need when filling out your credit application:

  • Employment details and contact information
  • Online Banking
  • Active mobile number and email address
  • Reason for applying
  • MyGov Info if you are receiving payments via Centrelink


Importance of Online Banking Information

You might wonder why bad credit loan providers ask for your online banking information. Don’t panic, they won’t open your actual bank account! Lending companies ask for your online banking information to closely examine your present financial situation. Since they don’t solely focus on your credit rating, they use your banking info to determine whether or not you are credit-worthy. Bank statements give them insights on your daily withdrawals and deposits, as well as spending habits. With this, the lenders should be able to determine if you have the financial capacity to repay the loan no credit check.

If you are worried about your security, you don’t have to be. They utilize state of the art banking technology that is extremely safe to guarantee that all your personal details are encrypted. This means that not a single soul would be able to view your personal details and passwords. If you are on centrelink payments, consider getting loans on centrelink.

Performing Employment Checks

If you are wondering if bad credit loan providers perform credit checks, yes they do. Credit checks is one of the essential procedures that they do. Since these lenders swear to follow responsible lending, they will contact your employer to verify your present employment details and status. You don’t have to worry about this since these lenders are well-trained in dealing with employers. They always make sure that they are discreet and won’t share even a tiny piece of your personal information or the reason why you are taking a loan.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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