All of us have a credit rating or score in today’s date but who gives this score? Fair Isaac Corporation is the one that gives each consumer a credit rating with the help of three credit agencies, but the all have different reports as different lenders contact different agencies. This score determines your borrowing power the better your score on lesser interest rate you can avail loans, with the fall in your credit rating the interest increases as the lender thinks of you as risk investment and the only thing that attracts him is more money. In the past it was difficult for the lender to figure out which borrower will return the loan but thanks to FICO score this problem is solved. Now the companies give different credit and loan options for people having bad credits. If your credit score is more than 720 it is great you can avail loans and credit cards at much lower interest. Your credit is considered bad if it’s in between 300 to 500 the companies expect you to pay greater interest. You can easily know your credit score by applying for a credit report; you are entitled to one credit report each year by the credit bureaus. There are other tools with which you can calculate your credit score on your own. If your credit score is bad start making payment son time don’t keep too many credit cards and try to get over with previous loans. Your credit score is the key thing on which the lender decides to give you loan and on what rate. The more payments you miss the more number of credit cards you have your credit score falls. Bankruptcy affects the credit rating the most so try to avoid it as much as possible.

Tips to improve your credit score

Most of us today have a problem of having bad credit and we do not know the steps to fix our bad credit. That is when we require a credit advisor a credit advisor advices us the methods to improve our credit. Credit counseling can cost you, but there are a few government organizations that provide you credit counseling free of cost. The credit counselor starts with looking at you credit report, he will plan out the way you can improve your credit, if you follow the plan laid by him you credit will start improving soon. But if you fall in the hands of a bad credit counselor it can cost you a lot, a misguided counseling can lead to loss of money and downfall of your credit score even greater. Make sure to check the background of the credit counseling company, the feed backs of previous customers will give you a good idea.

You can look offline or online for such a company. After hiring a company to do your job make sure to tell them your requirement’s give them correct info and documentation of all you expenses, with sufficient proof they can help you out of you situation and improve your credit. They can also help clear up things to the lender that can help you a lot.

You have a bad credit and are in need of a car don’t know where to look for a car loan

Well today most people have bad credit and few dealers try to take their advantage by asking for very high rates, but you need not give high rates just because of your poor credit rating. You should compare all auto loans available to you before finalizing to pay. Taking an auto loan will also help you improve your credit; if you make regular payments and never skip on payments it’s going to improve your credit score over time. Don’t just sign in the first auto loan that you get, shop around a bit to avoid extra charges. There are some lenders sitting ready to take your advantage don’t let them do this, make sure to take a bad credit car loan as the rates will be fair and the lenders is willing to help you establish your credit once more. Best way to get cheap rates is via a broker, contact a broker online or offline, tell your requirements and within few hours you will have different quotes to choose from.