Looking to obtain a bad credit loan? That is never truly easy. Most financial institutions will only lend you money if you can prove that you are good for it. They are interested in your possibility of paying the monthly fees and installments. First of all, they look at your credit score. If that credit score is low, the chances of you getting a loan are even lower. But what makes a good credit score and can it be improved?
Every time you make your monthly payments for bills in due time, you get good credit score. Every time you pay your taxes on time, you get some more good credit score. When you put money back on your credit card, your credit score also improves. Consider your credit score like a grade for how fast (and complete) you make your monthly payments. If you cant pay the gas bill on time, banks will believe that you are not capable of paying your loans on time either.
Yes, your credit score can and should be improved before you apply for a bad credit loan. Your credit card debts are the best way to start that improvement process. If your balance is close to your total credit line, this will contribute towards decreasing your credit score. You can easily calculate your line of credit yourself. The first step is to calculate all the available credit that you have, if you have 3 credit cards, add up the total possible credit line of each and the resulting amount is your maximum credit line. The next step requires you to add he balances on all the available account. The figure that you now get should be divided by the total available credit that you calculated in step one. The percentage that you get is the total amount of credit that you need to pay.