OH-loan offers access to the leading bad credit, payday, and installment loans available in Perry Ohio. Compare lenders, see reviews on lenders, and get connected to preapproved bad credit lending options all with OH-loan. We are here to help the citizens of Perry OH receive the financing they deserve.
The term “bad credit” refers to a low credit score or a short credit history. Multiple factors like a history of late payments or maxed-out credit cards have a negative effect and lower your credit score.
For individuals in Perry whose credit might have some blemishes or simply haven’t had time to build a credit history, bad credit loan options are available. These types of loans come either secured (backed by collateral like a home or car) or unsecured. Interest rates, fees, and terms for these types of loans vary by lender.
There are many types of banks, credit unions, and online lenders that tailor their services to borrowers with weak credit. When searching for a loan with less than ideal credit it is important you shop around because lender credit score requirements vary amongst lenders.
Although there are a few different credit-scoring models, the FICO credit scoring system is one of the most popular and is the model most commonly used Ohio financial institutions. With a FICO credit score, you will be ranked on a range from 300 to 850. The lower your credit score the more difficult it will be to access financial services like loans, credit cards, and financing.
According to FICO, a bad credit score is within the following ranges:
According to OH-loan, the average credit score for a citizen in Ohio was 705.
With a poor credit score, your ability to the chances of getting approved for a loan, buying a car, renting an apartment, or purchasing a home will be minimal compared to higher score borrowers. If you do get approved for a loan with bad credit, you’ll likely be charged the highest interest rates and higher fees. If you find yourself in this situation, there is still hope as there are ways to improve your credit over time. Being on top of your financing and paying your bills in full every month and regularly checking your credit report to catch errors can help you improve your credit score.
According to FICO, your credit score is calculated based on five major factors:
If you neglect one of these factors in your personal finances, your credit score will drop. For example, repeatedly making payments late or not making them at all will have a major impact on your score because your payment history makes up 35% of your credit score. Things like bankruptcies, foreclosures and high amounts of debt relative to your income could also result in a bad credit score.
Because payment history and length of credit history can make up 50% of your credit score, individuals with little or no credit history may find themselves with a lower credit score due to their lack of credit history. Borrowers with little or no credit history may find it easier to raise their credit score compared to individuals with damaged credit history.
Finding a personal loan with bad credit in Perry is possible, but it requires research and effort to find the most affordable loan possible. We at OH-loan do not suggest turning to payday lenders as their interest rates are often quite high and can compound. Here is OH-loan‘s step by step guide to getting a personal loan if you don’t have strong credit.