The Personal Finance Resource

Good News for Consumers With Bad Credit

So you have bad credit. Don’t sweat it. Lots of people do. There are lots of strategies and tools out there to help you improve your credit score. That will help boost your buying power, facilitate financial independence and start you on the path to get rich. And who doesn’t want to be rich?

This post will detail how you can live with bad credit for a time and the steps you can take to go ahead and repair that terrible borrowing history.

Your credit score won’t be bad forever

It takes some work, but you can fix a subprime credit score. You need to pay off your debts, fix your spending habits and pay regular attention to your credit report, but it is doable. Even if you score is below 500 on the FICO scale, fear not! There is hope for you yet. Beyond just better personal finance habits, it is necessary to learn how to properly dispute items in your credit report. And open new credit cards intelligently.

Getting credit cards won’t be impossible—just expensive

The good news is that getting a new credit card or obtaining financing when you have less-than-stellar credit is not impossible. It just means you will have to swallow a higher interest rate. Sometimes it make sense to do that. You might need get yourself into a new or pre-owned car, because the right job opportunity popped up—50 miles away in an area with no public transit! These are situations where you might have to suck it up and accept a 15% interest rate to get the goods that you need.

If you need to build your credit history from scratch, you can get a secured credit card. Very similar to a regular credit card, but it requires that you put down a security deposit. In the event that you cannot pay your bill, that security deposit will fill in the blanks.

You have help out there on the world wide web

There are companies that specialize in helping people with bad credit get themselves onto the good side of the ledger. These companies give you free access to credit reports and help you parse the finer details of credit reports. You might want to explore the possibility of working with a credit repair service that will help dispute errors on your reports and guide you down a path of boosting your score.

You need to monitor your reports

Credit monitoring is essential to making sure that you know exactly where you stand with your credit score so you can do what you need to do to improve it. Without monitoring, how can you know what is on your credit report? Plus, keeping an eye on your credit report can help prevent long lasting damage from identity theft. The moment that you spot an anomaly on your report, you will be able to start on the path to fix it.

Companies that offer quality credit monitoring are out there. It is just a matter of researching and finding the best ones. Read to find out more info about credit monitoring and how free monitoring really is possible.

With all these resources, if you put your mind to it, you really can raise yourself out of a bad credit situation. Watch your spending, monitor your reports and pay off your debts and you could be headed to a FICO score of 700!

Leave a reply