Is It Possible To Find Soft Credit Check Loan With Poor Credit?
by Lauren Strom Content Writer
When it comes to borrowing a bad credit loan, it is
important to realise the top challenges you would face in your hunt for additional
funds. Knowing your challenges can help you make a more informed decision.
Bad credit rating is not always a result of bad financial
decision. Manyatimes, your credit score falls down due to poor financial
habits. Nevertheless the sooner you learn about your past mistakes, better it would
be for your credit health.
Here is quick rundown on the basics of loan borrowing and
What is a credit report?
A credit report is an official document that contains detailed account of your credit
accounts, including loans and credit cards. All of your financial activities
are recorded in your report. Thus it is important to maintain a positive credit
A single lapse in the loan repayment can bring a red flag in
your credit report and hurt your score. If your credit report indicates multiple
red flags along with low score your loan application is bound to be rejected by
a main street lender.
How credit score is calculated?
There are five factors that primarily affect the calculation of credit score:
repayment history; credit utilisation ratio; loan mix—combination of secured
and unsecured loans; loan queries; and length of history. A person who pays
attention to each of these factors would successfully maintain a good score and
thus would always have a robust credit health.
Why loans are rejected?
A bad credit loan is primarily rejected due to bad credit score of the
borrower. Whether you delay the payment for a single account or multiple
accounts, a delay is a strong reason to create a red flag in your report.
What I can do?
A financially prudent person would always ensure that they do not trouble their
report for trivial reasons. Apart from repaying loans on time and maintaining
adequate debt to income ratio, it is important to minimise hard credit checks
on your report.
Every time you enquire for a loan or a credit card, a lender pulls out your
credit report to assess your loan eligibility. This footprint of credit check
which is recorded in your report is called as a hard check, while a credit
check such as a background check for job or for preapproved loans would create
a soft credit check. It would not affect
A lot of credit checks indicate high cash appetite and makes you a risky
borrower. With poor credit score, when you seek bad credit loan you must thus
search for preapproved loans from private lenders online. Otherwise, making a
loan query directly to a lender could further hurt your score as they will make
You can instead contact a loan broker and search for
available deals. Being loan experts, brokers have contacts with experienced
lenders. They would help you contact with lenders who are willing to extend soft credit
check loans to you.
You can compare and choose the best match without a delay. Always
ensure that you contact an FCA regulated broker. These are legally authorised
to share credit products and advice with the borrowers.
Created on Apr 10th 2018 00:57. Viewed 657 times.