You may need a loan with bad credit for various reasons. Health problems, large purchases, repairs, travel on vacation – these are not all cases when money may be needed. However, for those who have at least once delayed the payment of a loan at a bank or have an active debt, banks will not issue the required amount. The alternative is to contact a Payday Loans Connecticut.
What is credit history?
Credit history is a detailed dossier that reflects all the actions of a borrower in fulfilling his or her credit obligations under credit or mortgage agreements, online loans, and others. It also takes into account mandatory payments, such as:
- Payment for utilities;
- Payment of utility services;
- Administrative fines;
- Payments based on court decisions.
In fact, the credit history includes the whole range of information on all applications to any licensed financial institution (including all applications for a loan and facts of approval or refusal). Late payments, debts, fines and penalties are also noted here.
All information is collected in the credit history bureau and is stored there indefinitely. It is possible to erase the records only by a court decision when fraud is detected, but everyone can improve the credit history, because banks typically evaluate only data for the last few years, while the rest of the array can only affect in case of controversial situations.
Why the borrower may have a bad credit history?
Credit history is the borrower’s “passport”. All his or her actions performed in credit institutions are reflected there. Let’s say you took a loan from a bank. All data is immediately reflected in the credit history. It can deteriorate for a number of important reasons:
- You did not make payments on time. Let’s say you delayed several payments. Even if the reason was valid. The company employee doesn’t look at it;
- You made delays, which caused problems with the collectors;
- There were litigations with representatives of the credit institution;
- An error was made or the creditor did not submit data to the Credit Bureau on time. Unfortunately, this also happens. Then the client needs to submit a request to the Credit Bureau. An employee of the Bureau will check the info and then make changes unless, of course, a mistake was made.
How to correct mistakes in credit history?
The quality of the credit history may decrease due to the fault of the bank or credit bureau. It happens that the bank transmits data to the credit bureau with a delay or with errors. It happens that due to a technical failure, the data of another problem borrower gets into your credit history.
If a mistake is made at the credit bureau, it is not difficult to correct it. You write a statement and attach proof to it that the information in your report is incorrect. Ask the bank to provide you with a printout of the payment schedule or a certificate of absence of delays.
To correct an erroneously recorded delay, you need to prove the timeliness of payments to the bank using checks. Therefore, keep your payments and bank documents for additional insurance. These papers will allow you to prove your case and return the status of a reliable borrower.
How to correct credit history with small payday loans?
If delays are made through your fault and banks refuse new loans, payday loans will help. Payday lenders, unlike banks, have low requirements for borrowers. The main stop factor is active delays. If you do not have active delays, contact an online lender providing small payday loans.
Payday loans will help you restore your credit reputation. If you take a payday loan – you should pay it off regularly. Then you take and pay off the second small loan. Then the third. This is how you improve credit history. For the bank, this means that you have corrected credit behavior, delays are a thing of the past. Some lenders even offer a special service called Improving Credit History.