Credit rating agencies keep tracking your every transaction or any activity on your bank account. Based on data your credit score is decided. In simple words, credit score is the measure of your credibility for the lenders.
Credit score neither gets bad overnight nor it improves. There are various factors which decide your credit score. If you have the bad credit score which is common these days, definitely you start facing issues with your financial transaction.
With a bad credit score, you will find your bank will reject your loan application, credit card application refused, getting high-interest rates on loans from private lenders and all sort of bad credit score issues. You need to take some immediate actions to improve your credit score because it takes time to improve it.
In meanwhile if you want to a buy a car you can get auto financing for bad credit. People are generally unaware of the behaviors which lead to bad credit score.
Here is the few reason that leads your credit score to rate bad:
- Late payments
If you take credit card loans and do not make payments on time. Your credit will definitely be going to suffer. Thirty-five percent of your credit score depends on your payment history. Missing payment is even worse than late payments.
- Large old debt
If you do not pay the old debt and your account get charged off this is the worst situation which takes years to improve your credit history. In such situation for financing, you need to seek the help of private lenders. Car dealerships that finance bad credit can help you to get auto financing.
- High credit utilization
If the level of debt on your card is high and your credit utilization is high your credit score will suffer a lot even you make payments on time.
There are other factors as well that leads to bad credit score. Visit here to know more about the reasons for bad credit score.