Credit score measures the risk a credit provider takes on by lending to you. Rumour has it that credit scores affect lots of things, but some stories you may have heard are plain urban legend.
Let’s separate fact from fiction and bust credit score myths!
You might be reluctant to apply for a loan or other credit because you’ve been declined previously and told that you can’t get a loan.
The good news is there’s still a type of loan specifically designed for those with not so stellar credit file. With bad credit loans, the lender will assess your income and expenses to decide how much you can borrow — minus the credit checks.
This may be applicable in other countries, but in New Zealand, a potential employer doesn’t have to check your credit score.
First, they have to ask for your consent. If you didn’t give your permission, they won’t know anything about your credit history.
Now, there are exceptions depending on the job you’re applying for.Credit Score Myths Busted! Click To Tweet
Your credit score depends on which firm you ask. Companies such as lenders or service providers keep track of your credit history.
Although this information is centralised by several companies who use it to assign your score, a bank or lender may base various decisions aside from your credit score.
It is actually recommended that you review your credit file as often as you like. Checking your own credit report is known as a soft enquiry (informal) and does not affect your score — which is a better option as it doesn’t go on your record.
This is for you to be updated on what it contains and if there are any errors or new listings that can be investigated to ensure validity.
Has this happened to you recently?
- become unemployed
- foreclosure on your home
- suffered bankruptcy
- suffered another type of financial crisis
If so, your credit file will show black marks that can affect your borrowing ability.
Pretty Penny Loans specialises in bad credit loans that will provide you with cash for anything listed above, and then some. PPL’s specialised bad credit loan does not consider a bad credit history as a limitation.
Consider PPL’s bad credit loans online as the first step to deal again with the bank or top credit providers, which could happen within 6 months. You can even expect lower interest rates.
To process and approve your application, you need to provide your personal details and latest bank statement.