America’s Loan Company offers Personal Loans for people with bad credit. However, our loans can help improve your credit score. The reason for this is that America’s Loan Company reports credit histories to one of the three major credit bureaus, TransUnion.
You Mean A Good Payment History Can Improve My Credit Score?
In short, yes. According to a blog by Experian, another one of the three credit bureaus, “Paying your bills on time is the most important contributor to a good credit score.” You can read more at Experian’s blog by clicking here https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/improve-credit-score/. So, getting a bad credit personal loan from us may help improve your credit score as long as loan payments are done on time. Even if one of your payments is dishonored by the bank, immediately taking care of that payment should help to keep improving your credit score.
Don’t Ignore Other Debts, however.
Even if you paid your loan with us faithfully, not paying on other debts will have a negative effect on your credit. Other debts include credit cards, student loans, phone, gas, electric bills, etc..
So Should I Get A Loan Just To Improve My Credit Score?
No. No one should. Having too much debt can work against your aims of improving your credit score. The same blog from Experian mentioned above advises against such practice. Borrow only what you need and when you need it.
Should I Get Loans From Many Other Lenders To Improve My Credit Score?
According to the same Experian blog, this is a bad idea. When the need comes to borrow funds for an unexpected bill, America
’s Loan Company does offer bad credit loans. However, if the credit bureaus see that you are borrowing from too many lenders, this will work against your credit score. New inquiries from other lenders for instance, will show up as hard inquiries, which have a negative effect on the credit score.
So, As Long As I Make My Minimum Payments, It Is Okay To Max Out My Credit Cards?
That also does not work well to help improve the credit score. Credit bureaus do look at what balances your carry compared to the available credit.
Rebuilding your credit score can take some time. However, following some of these simple rules above can help you start on the right path. Do click on the link above for more details from Experian.