Your credit history can serve as a blueprint for improving overall credit, and the results will pay dividends in the future
Therefore, they require baseline qualifications and that you meet more specific guidelines. For instance, Check Into Cash typically loans money to people with credit scores between 300 and 700. Borrowers must meet the following criteria to qualify for Check Into Cash services:
- You must be at least 21 years old
- You must live in a qualifying state
- You must have a regular source of income
- You must be a U.S. citizen or permanent resident
- You must have an open checking account
One potential caveat is a hard credit check, also known as a hard pull. The company does this payday cash loans advance Tennessee to see where else you have credit, such as with a car, home, or other types of loan payments. Hard credit checks can reduce a credit score by five to ten points per inquiry, which can be especially detrimental for people with poor credit histories.
Lenders reward consumers for practical uses of credit
Once an applicant submits the appropriate qualification forms, Check Into Cash reviews the information. The company will reach out to you within hours or days of submission. If you qualify for the loan, a Check Into Cash representative will call or email you to complete the loan process and set up a repayment structure.
If you do not qualify, there are two potential reasons. First, you may not live in a state that offers Check Into Cash services. Second, you may not have a strong enough credit history.
Credit history measures an individual’s financial strength. It is a permanent record of their loans, debts, and line of credit, as well as opened and closed bank accounts. Your first step should be to get a credit history report from one of the three major credit bureaus: Experian, Equifax, or TransUnion. Consumers are legally entitled to one free credit report per year per company.
People with stronger credit scores will get more favorable loan terms, which makes it easier to repay the loan and build credibility. Therefore, if you do borrow again, you have an elevated standing in the eyes of lenders.
If you see any errors in your credit history, make sure to file a correction with Experian, Equifax, and TransUnion. For instance, a misattributed or unpaid credit card will damage your score and must be fixed before you apply for your loan. Whether you contact the bureaus online, on the phone, or via snail mail, make sure to have the pertinent documentation to prove your claim.
There are several other steps you can take to improve your credit score. Perhaps the most useful tip is to focus on your credit utilization ratio. This figure represents the total number of credit expenses divided by the entire line of credit.
For instance, let’s say you spend $1,500 per month. If your line of credit, or the maximum amount of money you can borrow, is $10,000, your credit utilization ratio would be 15 percent. The rule of thumb is to have a rate under 30 percent, though 20 percent is ideal.
A lower number suggests that the consumer is responsible for their money and understands how to manage spending and repayment. You can improve your credit utilization ratio by becoming the sole owner of your financial account instead of sharing it. Paying off existing balances and debts will also go a long way to improve your ratio.
That can mean only opening as many lines of credit as necessary and not closing other lines only when you stop using them. Lenders want to see that consumers have a diverse mix of credit sources as a way to prove their credibility. Additionally, do not apply for new credit too often as hard credit checks will hurt your score.