Bad Credit or No Credit Loans
Nearly 80% of Americans are in debt to lenders as of 2019, 60% of Americans have less than $500 in savings, and more than half of Americans have a “bad” credit score of 620 or below. So if you find yourself in need of a loan with bad credit you’re in the same boat as a majority of Americans, and that’s where bad credit loans can come in handy. EZ Money works hard to make sure everyone can get access to short term loans when they need it, regardless of credit score. We offer bad credit loans and no credit loans with only a few pieces of qualifying information needed.
What Are Bad Credit Loans or No Credit Loans?
These loans are offered to borrowers who have weak, bad, or no credit histories. There are many types of bad credit loans available. Because borrowers with poor or no credit history are statistically a higher risk to lenders, bad credit loans do generally have a higher rate of interest and more fees attached to them. But our goal is to make a personal or short term loan accessible to anyone in need of one, because at EZ Money we understand that you can’t always control what happens in your life and believe no one should be denied a loan when they need one.
Bad Credit Loans Done Responsibly
In our effort to provide safe and responsible funding options to people with subprime credit scores, EZ Money offers more than just payday loans. We offer installment loans that tend to have lower rates of interest and longer time frames for repayment. We also have options for lines of credit. What’s more is we take into account your financial situation and work with you to come up with repayment options that work for you.
All About Credit Scores
Many people find that their understanding of their credit score and how it can affect their financial life is lacking because no one has ever taken the time to really explain it. The loan professionals at EZ Money do more than just provide bad credit loans to those who need them, we want to help you understand what your credit score means and how you might be able to improve it.
What is a Credit Score?
Your credit score is often described as being like a GPA that’s grading how credit-worthy your financial history makes you, it’s calculated based on the information in your credit reports, which contain a list of the money you owe, the details of how you owe the money, and your history of paying it off as agreed. Lenders generally look at both your credit reports and your credit score when determining whether they want to lend to you or not. In addition to determining your ability to borrow from most lenders, more and more your credit score is being used by different types of agencies such as insurance firms, landlords, and employers in order to get an idea of how responsible you are. There are a variety of companies that generate credit scores but they generally come to similar results with a similar ranking to the credit scores between 300 and 850.
Breakdown of Credit Score Ranking
- Exceptional credit: 800+
- Very good credit: 740-799
- Good credit: 670-739
- Fair credit: 580-669
- Poor credit: 579 and below
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What Affects Credit Scores?
There are many reasons people have bad credit. Fair Isaac, who develop the FICO score, have revealed how they weigh factors when calculating credit scores. Payment history is 35%, 30% is the total amount you owe, 15% is the length of your credit history, 10% is your new credit, and 10% is the types of credit you have access to.
The most important factor in your credit score is your payment history. Missed and late payments hurt your score - the longer a bill goes unpaid and the more you owe, the more it hurts your score.
Credit Utilization Rate
Another major factor in your credit score is your credit utilization rate, which is the ratio between the total balance you owe and your total credit limit on all revolving accounts. Lower utilization of your available credit is better for your score whereas lenders consider those who have utilized all or most of their available credit to be more likely to miss payments.
Length of Credit History
The length of your credit history is somewhat important, figured up by utilizing the age of your oldest account, the age of your newest account, the average age of your accounts, and whether you’ve used an account recently.
Types of Credit
Another factor of similar importance to the length of your credit history is having experience with different types of credit, such as revolving credit card accounts and installment student loans.
It is important to remember that there are many credit scores and many factors that affect your score, but all credit reports use similar factors to determine your credit score so by focusing on improving across the board, you will improve your total credit score. Also keep in mind that most derogatory marks on your credit will fall off reports after 7 to 10 years, so it is never too late to start building!