Wells Fargo Financial Offers Options For Less-Than-Perfect Credit

Less than perfect credit options with Wells Fargo Financial

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Do you think you have bad credit? Or poor credit? Or credit that is less than perfect?

If you feel you have credit problems, you may have options.

In fact, Wells Fargo Financial specializes in lending opportunities for customers with less-than-perfect credit. We offer home equity loans, home loans, refinancing opportunities and options for bill consolidation.

Before exploring those personal credit management options, let’s first look at some credit basics.

What Your Personal Credit Score Means

Your credit score is a computer-generated numerical value that lenders use with other information to gauge the likelihood of being paid back when they extend credit, i.e. credit risk assessment. Generally the higher your credit score, the more likely you are to obtain the amount of credit you desire at favorable rates. One type of credit score is a FICO score, a numerical value ranging from 300 to 850.

Lenders have different standards and underwriting guidelines that determine the types of loans they offer and at what rates. However, the lowest rates are usually given to customers whose FICO scores fall in the low- to mid-700s and above.

What Determines Your Credit Status

Perfect, near-perfect or less-than-perfect credit scores are determined mathematically through the reported credit data...good and bad.

Any negative ("bad") reports, such as late or missed payments, can lower your credit score.

Credit scores in the mid-600s or below are typically considered less-than-perfect credit, and loans or credit offers for such scores typically come with higher interest rates to offset the credit risk.

However, even if your FICO score falls within this range, there may be alternate products developed for different credit levels. For instance, Wells Fargo Financial specializes in offering credit options, like home equity financing and bill consolidation loans, to customers with less-than-perfect credit.

Five Credit Score Facts

Accurate negative information can remain on your personal credit report for seven years (10 years for bankruptcy information).
Paying down installment loans is a good indication of being able to manage and repay credit obligations.
In general, the longer you responsibly manage your credit and make payments, the better your credit score.
Inquiries remain on your credit report for two years; however, credit scores may only consider inquiries for the last 12 months.
Managing both credit cards and installment loans well may lead to a higher credit score.

What Goes Into Your Personal Credit Score

Five pieces of credit-related information typically make up your personal credit score.

Payment History

Have you paid your personal loans and other revolving credit accounts on time, missed payments or paid late?
Amounts Owed

How much credit do you owe in comparison to your available credit?
Length of Personal Credit History

How long has it been since you’ve obtained credit? What is the age of your oldest account, newest account and average age of all your credit accounts (installment loans, personal loans and revolving credit)?
New Credit

Are you applying for new credit? How many lenders have checked your credit? In what timeframe?
Types of Credit In Use

What is your experience with different types of credit-revolving accounts (credit card) and installment loans (i.e. home loan)?

How Credit Scores Affect Interest Rates

Usually, a lower personal credit score means a higher interest rate for credit cards, installment loans and other revolving credit lines.

In contrast, a higher credit score typically means:

Better loan offers
Lower interest rates
Faster credit approvals

Wells Fargo Financial offers many financial options for less-than-perfect credit. Learn more about your personal home equity, bill consolidation or home loan options.

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10 Helpful Hints

Improving a credit score takes time. Borrowers with a pattern of reliable credit management are more likely to repay their loans on time.
Consistently pay your bills on time.
Review your personal credit report. Make sure all information belongs to you and is correct. If you find mistakes, you may want to check your report from all three national credit reporting agencies - Experian, TransUnion and Equifax.
Pay off revolving debt instead of moving it to other revolving accounts. The behavior of simply moving debt around could be associated with a reduced probability that you will repay your credit accounts on time.
If you don’t have a long credit history, opening too many new credit accounts too quickly can lower your average account age, lowering your credit score.
Complete rate shopping for an auto or home loan within 14 days. Credit inquiries made in a short time period will usually be considered as one inquiry for one loan instead of many inquiries for many new credit accounts...which can hurt your credit score.
Do not close old accounts to raise your credit score.
- Closing old accounts does not remove any late payments from your credit report.
- Long-established accounts show a longer history of managing credit, which can positively affect your credit score.
- Unused available credit does not lower your credit score.
Check your FICO score six to 12 months before applying for a big loan like a home equity loan, auto loan or home loan so there’s time to correct any errors if necessary.
Checking your credit report and FICO score will not damage your credit, as long as you order it directly from the credit reporting agencies or an organization authorized to provide consumer credit reports. Keep in mind, the FICO score you obtain when you request your credit report may not be the same score used by lenders to underwrite your loan.
Everyone is entitled to one free credit report from each of the three credit reporting agencies once a year. Contact Equifax, Experian and TransUnion for yours.