Bad Credit History And Loan Approval


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In fact, credit history is a very important variable that may trigger a decline even for bad credit loans. Thus, you need to make sure when applying for bad credit loans that you know exactly where you stand as regards to your credit history or you risk getting declined due to bad credit even though you are applying for bad credit loans. There are some things you need to consider especially when it comes to your recent credit history.

Recent Credit History Defined

There is no agreement as to what exactly recent credit history is. Credit history being the consecutive records of debt payments on your credit report, “recent” would imply the latest entries on the report. However, whether the latest are the last five, ten or a hundred is yet to be resolved. In the meantime we can only talk about an average.

The last six months on your credit report are what most lenders consider to be your recent credit history. This period needs to be free from stains if you want to get finance. It doesn’t matter if the rest of your credit report shows critical stains like defaults or even a bankruptcy, your recent credit history is what matters the most.

Late Payments, Missed Payments, Defaults

There are things that you need to avoid in order to have a good recent credit history. You need to understand that if you pay your bills or debt installments late, it always gets recorded into your credit report as a bad input. If you miss a payment, the situation is worst and if you don’t get yourself up to date with your payments you may default on your loan and that will ruin your credit.

These stains can affect your approval chances and that’s why you need to avoid them. Also, you need to keep your credit card and store card balances to a minimum. Don’t pay only the minimum payments on your credit cards, try to pay them in full or at least reduce the debt a bit every month. This will greatly contribute to boost your chances of getting approved.


Anyone who has gone through a bankruptcy process knows that financing is not simple after that and probably not advisable either. However, if you still need to get a loan after bankruptcy , you need to understand that it is very difficult to obtain funds with such low credit score as bankruptcy produces and thus, you’ll need to wait some time before your credit recoveries.

In most cases, you’ll need to let pass by at least 6 months since a bankruptcy was discharged in order for a lender to even consider you for a loan. Nevertheless, you can boost your chances by offering collateral or a co-signer. Also bear in mind that those six months need to show an impeccable credit history on your credit report.

Sarah Dinkins is an Expert Loan Consultant at where she helps people to repair their credit and to get approved for home loans, unsecured personal loans, student loans, car loans and other types of loans and financial products.


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