How Credit Repair Loans Can Increase Your Chance of Getting a Loan
Fix credit fast and increase your loan eligibility by improving your credit rating with a credit repair company.
The repercussions of leaving your debt on the back burner might mean having to deal with collection agencies, late payments, defaulting on loans or filing for bankruptcy – factors that can all result in poor financial health.
If you’re knee-deep in debt, you might be struggling to get out of it. You might also have a more difficult time with loan eligibility. If the stress bells are ringing in your head, don’t panic. How does the saying go? If you’re sinking in quicksand, relax and move smart. When it comes to credit repair, this tactic helps.
Canadians with no or low credit ratings might feel like it’s impossible to be debt-free. Here’s a secret: the best way to improve your credit rating is to actively use products of credit (and pay them off). Putting money on, and paying off, your credit will show lenders that you’re capable of returning the money to financial institutions. However, given the fact that lenders consider a person’s credit score when applying for new credit, the opportunity to rebuild credit is slim if you have a poor credit history.
At the end of the day, you need to prove to lenders that you’re not a high-risk loan applicant. High-risk applicants are seen through the eyes of lenders as borrowers who can't or won't honour their debts. The consequence to these customers: high-interest rates, and being deemed as ‘untrustworthy’ from a strange source who only cares to know one thing – your credit report.
Thankfully, credit rebuilding services can help people with low credit fix their history. Professionals who are dedicated to your account will help educate and inspire you to make serious financial changes by allocating your debt.
These five reasons why credit repair services are incredibly beneficial for people who are considered a high-risk to lenders say it all:
- Partnering with a credit repair company will show credibility to lenders and that you’re able to get your finances back on track
- After working with a credit repair company, you’ll be able to qualify for financing at lower rates without being declined
- You’ll have more financial flexibility in the future
- Credit repair services can help you consolidate debts and get approved for higher limits on credit cards and loans
- You can be proactive instead of waiting years for negative financial marks on your credit history to fall off
Canadians who generally get approved for higher credit limits at better rates typically have a credit rating that falls at 750 or higher (and these people take up a small percentage of the Canadian market). Approximately 21.40 percent of Canadians have credit rating between 680 - 749, and 2.85 percent fall below 520. Having a less than perfect credit score can impact your life negatively – it could be the barrier between getting the car of your dreams, saving money and being able to get approved fast and easy for loans.
