Getting a loan with a bad credit history is quite difficult. Banks rarely cooperate with problem customers and offer them unfavourable conditions. Small or secured loans may be more likely to be approved. The final chances will be individual for each specific case, they depend on other characteristics of the borrower and the assessment system of the bank you have chosen. Bad Credit Loans Guaranteed Approval is very essential for anyone and it is generally better to know about credit scores and ways to improve them.
How to improve credit history
If there are past dues that have already been closed, the credit history can be improved. A loan repaid on time has a positive effect on the credit file. To do this, you can use the following recommendations:
- Pay off your existing loan
- Open a credit card with a low limit and make payments on time
- Take a small short-term loan or microloan and pay it back on time
How to improve your chances of getting a loan with a bad credit score
- To increase the likelihood of approval of a loan application with a bad credit history, additional collateral is required. We advise:
- Attract a trustworthy person with a high income and a positive CI as a guarantor
- Provide highly liquid valuable property as collateral (car or real estate)
- Arrange a loan together with a co-borrower who fully complies with the requirements of the bank
- Credit history is one of the main indicators when evaluating a borrower. Everyone can review their dossier free of charge twice a year. The credit score information will help you understand how to get a new loan, without having problems with CI.