Remedies for a Bad Credit Score
A low income hampers your ability to be in control of your finances. To maintain some balance in your finances, preparing a budget will be helpful, as well as having minimal debts and a positive credit rating.
Damaging your chances of getting loans is relatively easy, where credit ratings are concerned. Many of us do not know the damage we constantly inflict on our credit ratings. They need to put some effort towards eliminating these risk factors. There are however already bad situations that need fixing. Attention must also be given to the duration of the control exercise. This duration is dependent mostly on the extent of the damage.
A the logical starting point is opening a bank account. This forms the basis of the whole rebuilding exercise. You may not have a lot of money to deposit in that account, but when assessors are looking into your already poor situation, lack of an account is detrimental to your fate. The more solvent accounts you hold, the better.
The next step would be to begin paying off your debts. Reporting that you are bankrupt causes your debts to be written off. If your situation is not as adverse, then arranging to start payments of the amounts owed is the logical resolution. You are especially at an advantage if you can pay off a debt with one payment, as to shall get a significant discount to it. After working towards finishing the payments or making them regular, you can direct your attention to activities that will elevate your credit ranking.
Your installments depositing needs to be made well before time. This will ensure all the progress made is not reversed again. It is the job of collectors to report on any late payments, as well as the history of any payments made. Your improvement efforts will gain from a positive report.
You shall now have to obtain a secured credit card. A a secured card is the only viable option when your rating is poor. They are issued once you have some collateral either at your bank account or a deposit towards the same. Responsible use of the card, with regular and up to date repayments, will impact positively on your credit score. While the instinct would be to avoid credit entirely, obtaining some and keeping it under control with ensuring positive progress in your rating.
You can also go further and request a friend to authorize you to be in charge of one of their lines of credit. If their credit patterns and score are impressive, having them reported under your name will greatly improve your standing.