London Auto Pawn Loans – An Overview On Credit Score - Instant Loans Canada

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London Auto Pawn Loans – An Overview On Credit Score

Dec 25, 2013

In Canada, credit scores are very significant because a good rating means greater chances of approval of large loan applications for a car or a house. To know more about credit scores read on.

What is a Credit Score?

Credit Score is a rate that is based on your credit history. It depicts how much credit you have used and how responsible were you in repaying those credits you have borrowed. A good credit score opens doors to lots of financial solutions and instruments as well as better job opportunities. Most of the loans now are only granted to borrowers who have favorable credit rating because of the lesser risk of non-payment attached to such borrowers. For subprime borrowers or those having bad credit ratings, there are only a few options. Among the loans granted to those with bad credit scores are the London auto pawn loans. Because of the greater opportunities attached to good credit scores, it is best that you know what affects your credit score so that it will be easier for you to maintain the same.

The factors affecting credit score are enumerated below:

  • Payment History. If you don’t take regard of your monthly credit card repayment dues, you will surely get a poor credit score. Only a good payer gets rewarded of a good credit score.
  • Minimum Payments. While minimum payments don’t have significant effects on your credit card, it has great effects on your credit score. The more you make your payments fixed at a minimum, the more your credit score will be negatively affected.
  • Credit Card Limits. It is very important to never go beyond your credit limit as this will have a negative impact on your credit rating. When you keep your credits and purchases below your limit, your credit score will be in a safe range. The moment you frequent your maxing out habits, your credit score will dwindle.
  • Late Payments. A constant late payment equals no payment at all when it comes to credit scoring. If you don’t pay your credit on time, your credit score will decrease to about 70-135 points. That will put you at risk on not being approved of a future bank or traditional loan.
  • Length of Credit Card Use. Regular payment on your credit card is not enough to make your credit scores great. You must be able to maintain this for a long time – at least five years – in order for you to achieve good credit ratings.

Sometimes there are factors outside our control which contribute to a poor credit rating and therefore a disapproval of a loan or mortgage. Whenever you are faced with this, always remember that you can still run after London auto pawn loans for your immediate cash needs as these loans are approved even when you have a poor credit score.