Where is the credit history stored?

First, you need to figure out what a credit history is, why it can worsen and how other banks can learn about it.

Credit organizations provide information about all borrowers to credit bureaus. There are three major credit reporting companies in the USA - Equifax, Experian, and TransUnion. Banks and other lending institutions contact them with requests to provide information about a potential borrower. Commercial organizations most often work with only a few credit bureaus, so some information may be hidden from them.

Newly established credit companies, as well as payday lenders, may not have to study their credit history at all before signing an agreement. They pursue the goal of attracting as many new borrowers as possible, so they are ready to give loans to almost everyone.

What are the causes of a bad credit score?

You may have a low credit score due to your fault, as well as for reasons beyond your control:

• regular missed payments without good reason;
• delay in payment of interest;
• the amount of monthly payments is the largest part of the monthly income;
• you have previously resorted to the service of bankruptcy of an individual;
• the bank issued a credit card in your name without your knowledge;
• fraudsters took out a loan using someone else's documents;
• the credit institution erroneously did not transmit information about the closing of the loan to the credit bureau;
• the debt was sold to collectors (as a rule, they do not transmit data to the credit bureau that the loan has been repaid).

Where to get a loan with a bad history in Michigan

1. Bad credit payday loans. As a rule, organizations of this type issue funds at interest without checking the borrower's credit score. However, they have a small drawback - they approve limited amounts (usually up to $1,000) and for very short periods (usually not exceeding 1 month). Ger more information on bad credit loans in Michigan here: https://www.first-federal.com/bad-credit-loans-in-michigan;
2. Credit card. When applying for a credit card, the attitude of banks is much more loyal than when receiving a loan in cash. Naturally, the amount on the limit will be lower, and the interest is higher, but then you will probably get money;
3. New banks. We have already mentioned this possibility, and it is a very good solution in many cases. "Young" banking organizations usually strive to form a so-called "loan portfolio" and want to attract as many new borrowers as possible. The chances of getting a loan from such institutions are quite high;
4. Secured loans. The most popular loans are loans secured by cars and residential real estate. But if you default on your loan, banks have the right to file a claim against the debtor, and the property will be seized;
5. Guarantors. An excellent option is to find a person who can act as a surety, that is repay your debt if necessary. In this case, the chances of loan approval are higher;
6. Credit brokers. It is often difficult to improve your credit history on your own, and specialists can come to the rescue and help resolve issues with a new loan. The most important thing is not to fall for the tricks of scammers but to find really experienced professionals;
7. Loans from individuals. Often, such transactions are characterized by sky-high interest rates. But private lenders most likely won't check your credit score because they don't have access to it.

There are ad sites on the Internet where you can submit a loan application. You can submit it to several lenders at once. To do this, you need to use a loan referral service that has an extensive database of reputable online lenders. Credit companies will check your credit history but they are quite loyal to those with bad credit.

How to improve your credit score

To get a loan, try to improve your reputation. You need to prove to the employees of the credit institution that you have changed your financial situation for the better. To do this, collect additional documents:

• proof of additional income;
• paycheck stub;
• real estate lease agreements;
• pension certificate;
• salary increase certification.

Banks offer special loans to clients with bad credit to improve their scores. They involve small loan amounts and higher interest rates. Secured loans or private loans can correct the situation.

Large banks allow early loan repayment on special terms.

What are good tips for borrowing money?

However, even this thorny path does not guarantee a complete correction of the credit history. Therefore, if you now have no problems with financial discipline, you should still take care of your credit history.

To do this, you must follow a few simple rules:

1. Payments on all your loans should not exceed 30% of the monthly income;
2. Try to optimize your budget;
3. Form a reserve of money in the account so that this amount could cover all your expenses for a period of three months or more. This is necessary in case of temporary loss of work or unforeseen situations;