Take advantage of free credit reports before time runs out
The pandemic has likely affected you in a number of ways, and if you haven’t yet taken advantage of free copies of your credit reports, you might be missing out on a credit repair opportunity!
Free Credit Reports Courtesy of COVID-19
If you haven’t reviewed your credit reports at all in the past 12 months, you’re missing out on a free benefit that could help you repair your credit.
Normally, you are entitled to a free copy of your credit reports every 12 months from each national credit bureau. But, towards the start of the pandemic, the major credit bureaus – Experian, TransUnion and Equifax – agreed to give consumers a free copy of all three credit reports. every week. This is a game changer for those with bad credit or those looking to start their credit history.
The pandemic has forced borrowers to monitor their credit as many people have been left out of work during the closings. Many workers have found themselves without pay and forced to collect unemployment benefits, and possibly postpone / delay their loans until they have a stable income again. With all of this stress and chaos surrounding financial stability and credit, the credit bureaus have opened up access.
To be part of it, you just need to visit the government website www.annualcreditreport.com to request your reports. As you can see from the name of the site, you usually only get access to one free report each year – but not yet! Free weekly access to your credit reports ends in April 2021, so if you want to see how you’re doing, act fast.
Your credit reports generate your credit score – the three-digit number between 300 and 850. Your credit score is an important part of your purchasing power, and with a bad credit score, you might have a hard time. get approved for new credit such as a car loan when you need it. It’s a good thing that credit can be repaired, however!
Creating a loan may be easier for a limited time
With the ability to view your actual credit reports once a week for free, you can virtually monitor your credit building and repair efforts in real time!
You can review your credit reports weekly for errors, stay on top of active disputed accounts, and see your credit increase or decrease based on your spending habits. If you missed a payment a month ago, you can request a copy of your credit reports and see how that payment was reported, and see how much of an impact it really had on your overall credit score.
You can take notes on your spending habits and really see how important your credit card balance is to your overall credit score. You can check the accounts in collections (if you have any) and even examine the impact of your student loans on your overall credit score.
It is also a good idea to examine your personal information. Identity theft can quickly ruin your credit reports, so it’s worth checking every now and then to make sure your identity is safe and that your information is being properly reported by all three credit bureaus. If anything is incorrect, you can dispute the incorrect information and have it removed. Even if something is incorrectly reported, if it is negative, it can hurt your credit. It is wise to review your credit reports as much as possible.
Repair your credit by accepting credit
You may have heard the following advice: “To build your credit history, you must borrow money!” and that has an element of truth. But the reality that many borrowers face is that they find it hard to get their foot in the door when their credit score is in tatters.
With a lower credit score, getting new credit approved isn’t always easy. As a result, it may be more difficult for you to simply “take on new credit” when your bad credit is what is keeping you from improving it.
However, there are ways to increase your credit even if it isn’t great. Here are some quick tips:
- Reduce your credit card balance below 30% if you have revolving credit.
- Take out a credit builder loan, which builds a savings and payment history.
- Become an authorized user on someone else’s credit card.
- Consider a secured credit card, which is backed by a deposit and is generally easier to qualify.
- Sign up for free credit reporting services that add your existing bills to your credit reports, such as Experian Boost.
- Buying a car with a bad credit auto lender who reports your payments and your loan on time.
If you have negative accounts on your credit reports, remember that time heals too. Most things fall off your credit reports after seven years. Each year, negative scores also have less of an impact on your credit score!
How Can I Get a Car Loan With Bad Credit?
Getting an auto loan with a lower credit score can be difficult if you are applying with traditional lenders. however, subprime auto lenders are unable to help credit borrowers, bad credit borrowers, and even borrowers with questionable credit histories.
Subprime lenders look at more than your credit history when making loan decisions. Instead of just looking at your credit history and income, they look at your work history, debt to income, amount of down payment, and maybe other factors.
These lenders can also tell the difference between situational and usual bad credit. Situational bad credit occurs when outside influences have had an impact on your credit reports, such as a medical emergency or sudden job loss. Usual bad credit often occurs when borrowers simply struggle to make payments on time. If your credit score has been damaged due to some predicament or just poor management, subprime lenders may be able to help you get the vehicle you need.
As an added bonus, subprime auto loans are reported to major credit bureaus. If you’re approved for finance and make your payments on time, you could be on your way to a better credit score! Payment history is the most important factor in your overall credit score.
Ready to jumpstart your credit history with a car?
AT Express auto loan, we’re dedicated to connecting borrowers with bad credit and dealers who can help you with many unique credit situations. Instead of searching alone, complete our free auto loan application form and we will search for a dealer in your area who has registered with subprime lenders. Get started on your way to your next car loan and credit repair today!