At some point in many of our lives, bad financial decisions are made that can affect your credit rating in a negative way. A rating of less than 580 is considered bad credit (some may say terrible credit), which limits the options of getting loans and other forms of credit available to you. Nobody wants to live their entire life with such a bad credit rating, certain measures may need to be taken to rectify the situation. One remedy for a negative rating is to apply for a bad credit loan. Believe it or not, there are institutions and individuals that specialize in giving out bad credit loans to persons with negative credit ratings.

The first step is to meet with a financial adviser and ascertain exactly how your credit rating is, so you can have a clear picture of the status and the options available as far as bad credit loans go. It is prudent to borrow what can be repaid quickly without further affecting the credit rating. A common form of bad credit loans, are loans for , computers, or jewelry. Most pawnshops will accept these items against a loan that has to be paid back with interest within the stipulated time frame. If the full amount is not repaid by the expiry of the said period, then the pawnshop can sell the item to recover their investment.

Another form of a bad credit loan is a loan against a car that you currently own. Proof of ownership (car title) has to be provided and left as collateral with the lender. It is usually common to be offered an amount a little less than the true value of the item used as collateral. Some lenders will also give bad credit loans against pay slips as long as the employment of the borrower can be verified. These loans are also known as payday loans. Payday loans are where the borrower agrees to repay the loan when they receive their next paycheck.

In most cases financial advisers will recommend that the borrower get alternative forms of bad credit loans instead of payday loans. Over the years, payday loans have got a bad rep due to high interest rates. A person with a low credit score can get a bad credit loan with good terms when they get someone with a good credit rating to co-sign with them. A co-signer should be a person that is well known to the borrower so that the borrower will not default on purpose thinking that because they know that the other person, they will cover the loan amount. Pay your bills, and you will be in good shape!

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H & I Credit Solutions

To begin, you have some personal information that is on your credit report. Your personal information will consist of your name, address, employer, and social security number. Your credit report also contains four categories of listings that are used to calculate your credit score.

Trade Lines
Trade lines include all regular credit lines such as retail store credit cards, auto loans, (home loans), and credit cards (such as a Visa or MasterCard). If there is a history of late payments, bankruptcy, charge off, or repossession, the listing will be considered negative by all loan originators when viewed on your credit report.

Collection Accounts
When an account is placed in collections to a collection agency because of delinquency, bad payment, or stop payment, it appears on the credit report as a collection account. Collection accounts can reflect two different statuses, either as a paid or unpaid account. Any type of collection account, whether paid or not, is considered negative by all credit granters when viewed on your credit report.

Court Records / Public Records
Court or Public records include bankruptcies, judgments, liens, divorce, satisfied judgments, and satisfied liens. All public / court records, including satisfactions, are considered negative by all credit granters when viewed on your credit report.

Inquiries
Every time a credit granter looks at your credit file, a credit inquiry appears on at least one of your credit bureau reports. If the numbers of inquiries are a small amount over the last two years, then there may be no negative effect on your credit worthiness. However, if there are many recent inquiries showing on your credit report, this raises a red flag and credit granters may deny you credit.

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H & I Credit Solutions

The question often asked is:

“I have a lot of good credit. Will my good credit cancel out my bad credit?”

Any amount of bad credit or bad credit entries on your credit report is devastating to your chances of being approved by a credit card company, a financial loan, or any company that extends a credit line to you. Most loan companies or credit lenders never actually physically look at your credit report or items on your credit report. A computer pulls your credit report, calculates your credit status, income, the amount of debt your owe, and stability. After the calculation of the a-fore mentioned items, a computer program then shoots out a status of ‘approved for credit’ or ‘denied credit’.

How does the credit calculation affect you?

Credit Card or Personal Loan

• Even a small amount of slow pay or a late payment will usually cause a red flag on your credit report for a credit card or personal loan denial.

Auto Loan or House () Loan

• The smallest amount of negative credit could cause the interest on an auto loan to shoot through the roof. Even a little bit of bad credit could cause you to not get approved for an auto loan, house loan, credit card or .

Credit repair is vital to consumers who want these & other finer things. Credit repair is the consumer’s defense.

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H & I Credit Solutions

Believe it or not there are actually 3 different credit scores that are not shared with the general public. You cannot even buy these scores, as they are so secretive. We are all familiar with the big 3 credit reporting agencies, Experian, Equifax and TransUnion. What about the other 3 secret credit scores?

These credit scores can only be seen by one type of industry and that is the automotive industry.

These secret credit scores have the ability to do one of two things, raise your interest rates or lower them. You see, a car dealership has the ability to choose which credit scores to submit to whatever bank they choose to get you approved.

I’m not saying this is how it works, but what if you were propositioned by money? Sounds great, all you have to do is send me clients with the worst credit scores and I’ll give you a large amount of money.
Would you do it?

This information you will probably never find available on any other credit restoration companies site. At H & I Credit Solutions we believe in arming our customers with all knowledge that will benefit them along with building a solid relationship with our clients, NOT customers, but our clients.

These secret credit scores are called FICO Auto Option Scoring. These credit scores only reflect your auto finance credit worthiness, and a dealership has the choice on which scores they will use to get you the best loan, or sometimes the worst loan.

Again, what if you were propositioned by money? Sounds great, all you have to do is send me clients with the worst credit scores and I’ll give you a large amount of money.
Would you do it?

There may be some dealerships that do, & do it all the time to get a kick back from the bank that extends the loan to consumers. The worst credit score/report they can submit and get approved, the bigger kick back the dealerships get!

Empower – Educate – Take Action

H & I Credit Solutions