If in the past you have used quick cash loans and have not managed them appropriately, you most likely harm your credit score. However, that’s not the only way to put your score in the gutter.
In premise, almost all activity pertaining to loans and credit cards will have an effect on your score. But just because your score is low, doesn’t mean you can’t bring it back up.
In this article, we will cover how you can recover from bad past decisions so that you can get your financial game back on track.
If you’re ready to take a step towards a better financial future, keep reading.
Credit Recovery: How Long Does It Take?
Bad credit is primarily defined by a history of negative remarks, such as charge-offs and late payments. These are damaging to your score and will stay on your report for a while.
On the FICO scale, a bad score is one that is between 300-579. The maximum score is 850. There is no regulated time frame for how long it takes to recover, but there are certain things that can affect how quickly or slowly you progress.
- The number of negative remarks on your report
- The context of the negative remarks on your report
- Where your score was before the drop
- The age of the negative remarks
Your credit recovery will directly rely upon the significance of the negative remarks that are pulling your score down. For instance, bankruptcy, foreclosure, or court decision is more difficult to recover than from bad quick cash loans.
If you find incorrect info on your report, start your recovery by correcting the errors. This will help your score tremendously.
How Long Does the Info Stay On the Report?
If you have negative remarks, you probably want to know how long they stay on your account. Well, that’s what this part is for.
Here are some common examples of credit-affecting remarks:
- A closed account can stay for up to 10 years
- A settled account can stay for up to 7 years
- A charge off can stay for up to 7 years
- A late payment can stay for up to 7 years
- A hard credit inquiry can stay for up to 2 years
- A foreclosure can stay for up to 7 years
In any case, you can see that the common denominator of the maximum length of time is 7 years. You can check your credit report to determine when the removal date will occur for a specific item. The credit bureau will often specify the year and month of the removal date for each negative remark.
If an event occurred recently, it won’t be removed for quite some time, so you will most likely have to wait. But if the event occurred years ago, you might be closer to upgrading your score than you think.
In premise, someone with a perfect score will experience a longer recovery time if their score dipped down. On the other hand, if you had a reasonable score, it might not take as long for you to recover than the prior individual.
How to Recover From Bad Quick Cash Loans?
First and foremost, the best way to recover from bad quick cash loans is to no longer make use of them. You should pay them off as soon as possible. And if you need money again, you need to find a good quick cash loan.
Considering you are already here, you can check out how our online loans work and why they help individuals improve their scores.
Nonetheless, here are some other examples of how you can drastically improve your credit score. Keep in mind these opportunities are not available to all people.
You can apply for a debt consolidation loan via a mortgage broker, which will secure the loan on your household. These loans don’t affect your credit score drastically, but if you pay them off appropriately, you will see drastic positive changes.
A consumer proposal is a binding process provisioned by a bankruptcy trustee. They will work to develop the proposal, which is an offer to creditors of a percentage from what is owed to them. On the other hand, they can offer to extend the time to pay off the debts owed. In most cases, a combination of both is used. This is not applicable to individuals who are not bankrupt. However, you can attempt to arrange something in a similar fashion on your own.
Secured Credit Card
A secured credit card is a great way to build credit if you don’t already have a credit card. Anyone gets approved, and the only requirement is a deposit as a guarantee that you will pay off your balances. Payments are reported to the bureaus, so that’s good. Just make sure to pay on time, and not close your account too soon.
Bad Scores Eradicated
Now that you know how to recover from bad quick cash loans, you are well on your way to get your financial aptitude back to where it belongs. Don’t avoid improving your score, because credit really opens many doors for individuals.
With good credit, you can purchase a home, start a business, and pursue lengthy journeys. Without good credit, you’re left to the unsubstantial loans that put you deeper into debt.
If you’re interested in improving your score and making use of quality quick cash loans, we provide exactly that at CaptainCash. Get in touch with us and we will happily accommodate your needs.