If you have an average credit score, it doesn’t mean that you can’t get a loan. Even if you have bad credit boat loans, options are still available to get the money you need. This article will cover tips for improving your credit score and securing a loan even with bad credit.
Recheck your score.
You can check your credit score once a year for free at AnnualCreditReport.com. This gives you a good idea of where you stand and what loan terms are possible (or not).
If your credit score has improved, then take it as confirmation that your steps have been practical. If not, keep at it! A credit report monitoring service such as Credit Sesame will help you spot errors on your report so they can be fixed before damaging your score.
If there’s still room for improvement after monitoring your credit reports with Credit Analysts, consider using a simulator tool for free to see whether making changes in one area would affect other areas of your financial well-being.
Lower your debt load
The first step to getting a loan is ensuring you have the right balance between debt and income. It’s crucial to prioritise your debts using the following categories:
- High-interest-rate credit cards
- Boat loans
- Student loans (if applicable)
The order in which you pay off these debts depends on the interest rate they carry. If you have multiple high-interest-rate credit cards, it makes sense to pay off one first so that all of your remaining debt carries a lower interest rate. This will save you money in the long run and give you more options for building up good credit history. You can also use other methods of eliminating debt, such as making extra payments or transferring balances from one card or loan to another at a lower rate.
Work on timing your credit asks
You should apply for a new loan when you know your current one will be paid off. If you ask for a new loan while paying off an old one, it will appear in your credit report as having two open lines of credit at once, which can hurt your score.
Applying for new lines of credit every six months is enough to show lenders that you are managing them responsibly and not overextending yourself.
Move beyond interest rates and fees.
Many factors contribute to a good loan. Look beyond the interest rate. How much you will pay in fees and other costs is just as important.
- Low-interest rates on loans with flexible repayment schedules.
- Fixed interest rates on home improvement and student loans.
- Lower APRs (annual percentage rate) for credit cards, mortgages and private business loans.
Below-average credit score
You may have heard getting a loan is only possible if you have good credit. But that’s not true. You can still get a boat loan, even if you have an average or below-average credit score with bad credit boat loans.
Someone with an average or below-average credit score can receive a boat loan in their state, even if they are self-employed or unemployed and have no collateral for the loan (such as real estate).
These are some ways to get approved for a loan with an average credit score. If you need help finding a lender willing to take on your loan, try applying at multiple lenders or contacting a broker who specialises in helping people with bad credit history get loans. Consider contacting your bank’s credit department and asking them what options they have available for working with borrowers who haven’t been able to maintain good credit scores over time.