Have you had any run-ins with credit score killers that threw you towards best online cash advance loans to rescue your budget? Sounds like a really bad attempt at a horror movie or the life and times of people who made some “not great” decisions concerning their credit cards. Creditors have become much more selective as to who they do business with. They are quick to charge fees for mistakes which used to have grace periods. Once mistakes are reported to credit bureaus by any company, creditors don’t hesitate to hike interest rates. Bad credit decisions have a multitude of negative results.
If the fast cash advance online loans work for your budget, then you have both the opportunity for financial relief as well as a resource to fall back upon as you fix your credit history. These loans don’t show up anywhere on your credit history unless you default on the loan altogether and it gets sold to a collections agency. Once this happens, they report the default debt and your credit continues to drop. It will also prevent you from having responsible short-term loan lenders as your back-up plan through tough financial times.
Keep online cash advance loans as a backup to righting a financial wrong.
What are the credit score killers?
*If you carry big or maxed out balances on your credit cards, you are killing your credit score. The amount of debt you have is compared to the amount of debt which you could possibly have if you spent all your limits. When this ratio is high, your credit score drops. This is the credit utilization rate which is about 30% of your credit score.
*Closing credit cards will also have an adverse effect on your credit. This action will lower the amount of available credit for your credit utilization ratio. The longevity of your credit history will also change, especially if the closed account was one which had been opened for many years. You would be better off keeping it open and use it once in a while on something you would normally have to buy, like food or fuel and then pay the balance in full at the end of the month.
*Late payments are one of the leading causes of dropped scores. It is the one aspect which individuals have the most control over. Since this action controls about 35% of your credit score, you would think that people would fight to make their due dates. This applies to all bills not just credit cards. Sign up for automatic withdrawals; use online banking to schedule payments or do whatever it takes. It is the easiest way to safeguard your credit score.
*Payments are better off arriving late than never. Defaulting on your debt is a big no-no. If you fail to pay back the owed amount, no new creditor or lender will want to give you money. If your home goes into foreclosure or you declare bankruptcy, you can watch the killer bite off about 100 points from your credit score. Ouch!
* If you try to open too many accounts in a short period of time you are slowly pecking away at your credit score. When you apply for new accounts, the company will make a hard inquiry into your credit history deducting a point of two for the quick glance. The company also leaves their name at the door so any other lender or creditor who goes in will see all the recent visitors. It won’t look positively in your favor to be popular in this area.
*You need to have at least one or two credit cards. People who refuse to use credit for fear of acquiring credit troubles are sorely mistaken. Not only do you have to have a credit card, but you will have to use it. Like anything else in life, you will have to adapt the rule of moderation to keep the positive vibe flowing. Use the cards in rotation and always pay them off in full when the statement comes. You will not carry debt but will build a history of great money management.
* As tempting as it is to help a friend or family member, consider all the negative aspects of co-signing on a loan. There is a lot to go bad as well as adding more debt to your own personal totals. Think rationally and look out for your financial needs first. You will be held responsible for paying the loan if you something goes awry in order to save your own credit.
When credit killers have thrown your finances down into the ground, don’t let them defeat you. Keep your head up and approach the situation with candidness and determination. Your online cash advance loans lender will be there to help along the way, but you will persevere in the long run to regain proper credit.