Your credit rating is an estimate of your ability to fulfill your financial commitments based on your financial history. Banks, credit card companies, phone companies, landlords, public utilities, and even potential employers may check credit ratings as part of any application procedure.
Your credit score is a numeric ranking based on your credit history that indicates your capacity to repay a loan or any other financial obligation. They usually range from a maximum of 800 (an excellent score) to a minimum of 300 (a bad one).
Credit scores are usually created by consumer reporting agencies (also known as credit bureaus), which collect and aggregate consumer payment data collected from banks, merchants, credit card companies, tax authorities, public utilities, internet service providers, phone and cable TV companies, as well as innumerable other similar sources nationwide.
There are three major credit bureaus in the United States: Equifax, Experian and TransUnion. All three will usually have a file on you that lists your entire credit history: What bills you have paid and what bills you have not paid, credit card payments, bankruptcies, alimony payments, federal, state and municipal taxes, even speeding tickets. In addition, there are dozens of other consumer reporting agencies throughout the country that usually specialize in local markets.
All consumer reporting agencies or credit bureaus have been regulated by the federal government under the Fair Credit Reporting Act (FCRA), passed in 1970, which requires them to ensure that the information they gather and supply to banks and other financial institutions for their use is a fair and accurate summary of a consumer's credit history.
Banks and other financial institutions will request your credit score from a consumer reporting agency to use as the basis for determining your credit eligibility. Your credit score is what they refer to, for example, during their underwriting process when assessing a loan application − or in other words, your credit score is the bank’s way to determine whether or not you are reliable enough in their eyes to pay back a loan, be it a short-term loan or a long-term loan.
Another score for evaluating your credit worthiness used, for example, to approve a mortgage, is your FICO score (FICO being an acronym for Fair Isaac Corporation, the company that developed the FICO score formula). Borrowers with a high FICO score tend to be able to obtain lower interest rates on mortgages and other loans than borrowers with a low FICO score. In other words, the more you compromise your credit score the more you will compromise your ability to obtain favorable terms when applying for most forms of credit.
Sometimes, a customer’s credit score is deemed too low to obtain a traditional bank or credit card loan. This usually happens when a customer has a bad credit history because he or she defaulted on payments or has a very thin credit file and lacks a transactional history. An alternative solution for customers with bad credit is a no-credit loan. No-credit loans do not require a credit check.
One example of a no-credit loan is a payday loan. These rarely incorporate a comprehensive credit check, so they allow customers to access funds quickly on demand. Payday loans, however, can soon become unaffordable if handled irresponsibly, since the entire loan amount plus interest is usually due to be paid on your next payday. Another example of a no-credit loan is a car title loan, in which the borrower puts his vehicle up as collateral. Should the loan not be repaid on time, the lender will be able to take possession of the vehicle and then would be entitled to sell it to recoup his money.
As you might conclude from this brief overview, a healthy credit rating is a vital element in your economic wellbeing. A low credit score will be detrimental to your financial wellness. If you are ever in a need of a short-term loan and find that your credit score is insufficient to obtain one from a traditional source, consider applying for one with CreditCube.
CreditCube is a Tribal enterprise, wholly owned and operated by the Big Valley Band of Pomo Indians, a federally-recognized American Indian tribe and sovereign government. Any Agreement entered into as a result of this Application shall be governed by applicable Tribal and federal law. Each aspect of communication and transaction with/on this site will be deemed to have occurred in CreditCube’s Big Valley Band of Pomo Indian Reservation offices, regardless of the location where you are accessing or viewing this site.
⚠ Please note: This is an expensive form of borrowing. CreditCube loans are designed to assist you in meeting your short-term borrowing needs and are not intended to be a long-term financial solution! Examples of emergency reasons why these loans might be used include unexpected emergencies, car repair bills, medical care, or essential travel expenses.
* Loan approvals are subject to underwriting. Approval may take longer if additional verification documents are requested. Not all loan requests are approved. CreditCube reviews your information in real-time to determine whether your information meets our lending criteria. You acknowledge that by completing and submitting the website application that you are applying for a Loan. We verify applicant information through national databases including, but not limited to, Clarity Services, Inc., a credit reporting agency, and we may pull your credit in order to determine your eligibility and ability to repay.
** Maximum loan amount is $500 for first-time customers. For returning CreditCube customers, rates may go down over time based on your CreditCube Loyalty Program status and your payment history with us. Please see our Loyalty Program page for more information.
*** Loan Applications processed and approved before 3pm EST Monday-Friday are typically funded on the next business day. Example: If your loan is processed and approved on Friday before 3pm EST, the loan will typically be funded on the following Monday. Deposit times may vary depending on your bank. Business Day means Monday through Friday excluding all federal banking holidays.
CreditCube does not lend to residents of Pennsylvania, Connecticut, Minnesota, New York, Vermont, Virginia, West Virginia and Georgia. Availability of installment loans in your state is subject to change at any time with or without notice at the sole discretion of CreditCube.