Bad credit finance can be broken down into two words with two different meanings. Bad credit and finance.
Bad credit can be described as the inability of a person or an organization to honor debts or loans and pay in time. Finance here is meant to mean or stand for loans and or any money lent to a person or organization that is meant to be paid back at a specific time. Bad credit finance therefore means that; records provided by the bank about a person’s credit history that prove that the person or organization is unable to pay their loans on time.
To some money lenders, bad credit finance records means that that person should not be given or granted loans and this is a red flag for them, and to others they actually do not care and still may use these people for personal gains. To come to conclusion that a person has bad credit finances, some factors have to be weighed and looked at.
Payment history. This here factor carries the most weight in bad credit finances. It consists of clear indications of how a loan was paid up to the third of the total loan. The whole sum boils down to some few factors, thirty percent of the factor is based on the amount owed, and how much money the bank offered to you. Fifteen percent looks at the time period of the credit history and the rest is split between mix of credit and enquiries of new credit.
Bad credit finance is the worst thing that can happen in your records, it makes you in accessible to future crucial loans. To avoid poor or bad credit finance records, clear loans on time, avoid loans that cannot be repaid and be on the safe side of creditors.