Jul 22, 2021 / Credit
At Utah First, our members come from all walks of life. When it comes to credit, some have pep in their step and others have been told to take a hike by big bank lenders, who talk the talk, but don’t walk the walk with colorful credit borrowers.
If you’re worried about your ability to qualify for a loan or you want to know the next steps to keep progressing in your credit journey, we want to help you learn the basics of building credit and debunk the common myth that you can’t get a loan with less-than-perfect credit.
Every time you apply for a loan, make a payment on a loan, or miss a payment on a loan, your credit history gets reported to companies called credit bureaus. These companies compile your credit information into a convenient credit report and assign a three-digit number to summarize your credit history—your credit score.
When you apply for a loan, your lender may request to see your credit report and credit score. If your lender sees a pattern of on-time payments, a healthy mix of credit types, and a low used credit to available credit ratio, there’s a good chance you’ll get approved for your loan. On the other hand, a lot of lenders get scared away by missed payments or a history of credit problems.
In essence, this is the purpose of credit. It gives lenders a peek inside your personal financial practices, so they can make an informed decision about your ability to repay your next loan. It’s not a perfect system, but it makes the financial world go ‘round—loan after loan, credit report after credit report. But what if you have less-than-perfect credit? How do you get back on track?
The unfortunate irony of the lending industry is that you have to have credit to build credit. But how can you build credit if you can’t get credit in the first place? If you’ve been denied a loan in the past, you may be asking this same question, wondering where you can go to get your next loan.
The good news is that not all lenders are alike. And some are willing to work with you, helping you qualify for a loan, so you can keep building credit. These lenders may give credit (pun intended) to other sources besides credit history. They’ll look at your income, your current debt, and other factors. Some also work with colorful credit borrowers as a service to you and the community to help you qualify for a loan when other lenders turn the other way.
Lucky for you, Utah First just so happens to be the kind of lender that you’re looking for—the kind of lender that appreciates you for you, and works with colorful credit borrowers to get them back on the right financial path. We have auto loans for all credit types, and we want to help you qualify for your next loan, no matter what other banks may have told you about your ability to qualify.
So, no matter where you are in life’s journey, make your way to Utah First, where we approve of you, no matter where your credit has wandered. Because until we’ve walked a mile in your shoes, you can be you, knowing that we’ll be your lender every step of the way. Visit a branch near you or apply online for your next loan today!