Can You Get Financing for an Above-Ground Pool with Bad Credit?
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Having bad credit can be a huge hindrance in your life. This is because credit applies to nearly every area of our lives. Thankfully, we are a credit repair company that can help to begin the process of repairing your credit, allowing you to get your credit and life back on track.
This piece will take a deeper look at the impact that bad credit can have, including when it comes to getting an above-ground pool in your yard or on your property because that is how far bad credit can reach and know what your options are is important.
First and foremost: what is bad credit?
What Is a “Bad” Credit?
The first step is to know exactly what bad credit is. Since there are three major credit bureaus in the United States as well as FICO, we will use FICO as our reference for the scoring scale and where that range falls on that scale.
According to FICO, a “bad” credit score is in the 300-579 range. That 300 score is the lowest that you can get and only 4% of Americans have a credit score of 500 or worse. Still, just being in that range is bad and can really hinder your ability to procure a loan of any kind, get credit cards, and even rent a home or apartment.
Having a bad credit score is not necessarily indicative of who you are as a person but it does illustrate how you are when it comes to spending your money, paying your bills, and doing so in a timely manner. Creditors want to make certain that you are reliable and will pay your bills and they are not forgiving if you fail to do so.
The Factors Behind Credit
Bad credit is usually brought on by a number of different factors. One of the most damaging aspects of any credit score usually has to do with the payment history. Your payment history makes up 35% of your FICO credit score. So if you have trouble paying your bills on time, it can reflect negatively on your credit score in a big way.
After that is your credit utilization. This accounts for 30% of your FICO credit score and, in simple terms, is the amount of your total credit limit that you are currently using. If, for example, you have a $5000 credit limit between multiple credit cards, you would need to keep your total debt to around $1500 or less.
Credit utilization is a very common issue, particularly among Americans. It is all too easy to put something here or there on your credit card. This all can add up over time and lead to more of your credit being utilized than you may have realized.
Your credit history is another factor. This is somewhat less in your control as credit bureaus factor in the length of your credit history. If you are newer in terms of loans or credit cards, your credit age will be lower and will have a little bit of an impact on your overall score. This is around 10% of your overall FICO credit score.
The type of debt is also important. There is “necessary” debt that isn’t considered the same as something such as credit card debt. “Necessary” debt is something such as an auto loan or a mortgage. These are things that we obtain because we need a place to live and a way to get to and from work so that we can pay our bills.
The first two factors lead to the biggest drops in credit score. If you have had trouble paying your bills or you are utilizing more than 30% of your available credit, your score will take a hit.
Can You Get Above-Ground Pool Financing?
This all depends on what company you go through. Much as with any other type of financing, it depends on the lender. They will assess your trustworthiness as a borrower and determine whether or not they will provide financing.
In addition to approval for financing, there is the question of what that financing will cost. With a bad credit score, you could get financed for something such as an above-ground pool but it will likely cost you dearly in interest rates.
And that is how those with “bad” credit ratings still get financing: they pay a lot in interest fees. This is how the lender protects their investment in you and gives you the opportunity to still get the things that you want and need.
For something such as an above-ground pool, getting financing is not an impossibility even if you have a bad credit score. Just be prepared for higher-than-average interest rates attached to your loan.
How to Fix a Bad Credit Situation
While it may seem as if having bad credit is the end of the world, it is fixable. Arriving at a bad credit score is not something that happens overnight and getting out of that situation is not something that happens overnight either.
The first step is to make certain that you are paying your bills on time. This sounds easier than it may be at times. Try talking to your creditors to see if there is a more manageable payment to be made each month. You can also look into debt consolidation to make it a little easier and more affordable to pay down those bills each month.
This is particularly important when it comes to your credit cards. Even if you begin by paying your credit card bills on time for a few months, that establishes a positive trend in the eyes of lenders. It won’t totally repair your credit overnight but it will begin establishing a positive trend that will get you moving in the right direction.
Keeping your credit utilization down is essential too. In an ideal situation, you should be able to pay off the balance of your credit cards each month. That isn’t necessarily the reality for many Americans but it doesn’t have to be a bad situation.
If you are carrying a balance month to month, make certain that you are paying as much over the minimum that you can. By doing this, you will chip away at the principal balance and save yourself some interest fees down the line. Not only that, but it will also reflect positively on your credit report and show that you are capable of paying more than the minimum payment.
Having a bad credit score can have a far-reaching impact on your life. Not only can it make getting a loan a serious issue, but it can also mean not being able to get credit cards, rent an apartment, or finance that pool that you had been hoping for.
Thankfully, your credit score can be remedied if it isn’t in the shape that you hoped it would be. By taking positive steps forward, you can begin your journey down the path towards positive credit reports and being able to finance the things in your life that you want to get financed.
Don’t dread that credit score; work at it to make it the best that it can be.
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