Is bad credit a road block for getting your payday loan?

Bad credit can be a roadblock when seeking several services including getting your payday loan. Emergencies may come up when you are in a tight financial situation, and you will need payday loans bad credit Utah. Many lenders use the FICO scoring system to determine loan eligibility. Below are some of the things that are considered as bad credit.

Defaults and Collections

When bills pile up, and one does not make an effort to catch up, the companies owed may consider the account in default. They may hire a collection agency to contact the defaulter and recover the money. This leads to a collection notation record on the defaulter’s report that will remain there long after the bills are cleared. Unless the lending company manually looks at the report and considers your efforts to clear the bill, it can hinder you from getting a loan. At will take into consideration all your efforts and process your payday loan bad credit Utah within minutes.

Missed Payments

Three things are considered in missed payments to consider it as bad credit; the number of missed payments, the period since the last missed payment and how late the payments were. Credit reporting bureaus track missed payments and taking long periods to pay or missing other payments can greatly affect one’s credit score.

Public Records

Any records that are publicly available may be used to judge one’s credit eligibility. Records such as bankruptcy appear on credit reports and may be so for up to ten years. Other records such as judgments and tax liens may appear on credit reports unless satisfied.

High Credit Card Utilization

Credit card utilization is the amount of money left in the card versus the card limit. Maxed out credit cards that have not been paid is a bad indicator and can lead to bad credit. However, reducing the credit and minimizing expenditure raises the credit score with time. One should learn to avoid unnecessary and impulse buying.

Foreclosure and Repossession

A foreclosure happens when one takes a mortgage on a home and fails to pay the lender on time. Repossession happens when one defaults loan payment on other types of property. On both of these occasions, the lender takes back the property and auctions it to recover their loan amount. Sometimes the amount recovered after the auction is not enough, and one is served with a deficiency judgment. This results in bad credit and may hinder you from borrowing in some institutions.

Money 4 You Payday Loans has been offering loans with the same low repayment rates for over twenty years. We have the experienced employees who are friendly and provide the best customer service experience. We understand that we are never really in full control of what happens in our lives and we sometimes need assistance between paychecks. Visit us at one of our 21 offices along the Wasatch Front Utah or on our website to get your payday loan today.