General belief among many people is that having a bad credit history is a big hurdle in applying for a loan or card
. But you can also get loans having bad credit report. Its better to repair your bad credit, which will be more than just approving loans. Have a look at the following reasons why you should be interested in repairing bad credit report:
Get a higher credit limit:
If you have bad credit, a creditor would restrict your limit. Hence, having a higher credit limit will be a big advantage that can protect from exceeding or maximizing your usage.
Get the best interest rate:
The higher your credit score is, the lower your interest rate would likely to be. This is helpful in applying for a loan. You can get the lowest interest rate from insurance companies also if your credit score is.
Get approval for a mortgage:
Many creditors have strict standards for approving mortgage applications. Having a good credit score, you can get approval for a mortgage more easily. You would be in much better position to buy your dream house and get home loan at one of the best interest rates.
Get approval for a business loan:
If you are going to take loan for running your business smoothly, you must have a good credit score. Creditors review your business application on the basis of your personal credit. Hence, your loan application will be rejected if your credit score is poor.
Eliminate Security Deposit:
If you have bad credit, it will be very tough for you to get a loan for your personal or professional needs without submitting security deposit. Lenders can ask you to pay cash deposit or submit collateral to minimize the risk of payment default.
Strengthen your negotiating power:
You will be in good position in negotiating any kinds of loan deals with the creditors if you have good credit score. If a creditor can see that you can handle debt and repayment sincerely based upon the information in your credit report, negotiation would be easier for you.
No need for a guarantor or a co-signer:
Its a very tough and tedious task to convince a person to guarantee or co-sign on behalf of you but you dont have to piggy bank on the other persons credit history just to get a loan or credit card if you have good credit score.
There are lots of factors that can affect loan approval for you whether its personal loan as well as professional (business) loan.