Remedies for a Bad Credit Score
When you earn a small income, you are bound to have a hard time controlling your expenses. 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. Most people have no idea how much they frequently put in jeopardy their credit ratings. They should work towards avoiding such risks. There are however already bad situations that need fixing. You also need to ask yourself how long it will take to rebuild your credit score. The the level of damage is directly proportional to the time it will take to restore your positive score.
A the logical starting point is opening a bank account. You are required to have this provision when you commence your rebuilding journey. 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. Having good ones with no liabilities on them is desirable.
The next step would be to begin paying off your debts. When you declare bankruptcy, almost all your debt is wiped. For those in milder circumstances, there is need to start the repayment initiatives. It is better for you to strive to pay some o the debts in one go, as this will earn you big discounts on them. After working towards finishing the payments or making them regular, you can direct your attention to activities that will elevate your credit ranking.
Work towards keeping the regular installments on time. This will minimize chances of you loosing your advantage in the struggle. Debt collectors are required by law to provide an account of your payment behavior. You want your report to remain positive.
The next step is to get a credit card. Since you credit is poor, your viable option is to get a secured credit card. They are issued once you have some collateral either at your bank account or a deposit towards the same. Using the card in a responsible manner, while ensuring the repayment is frequent and timely, will be good for your ranking. The immediate reaction for most people is not to acquire more credit, but getting some and having it in check will work in your favor.
After arriving at this stage, you then need to get a small loan. To improve your score, you shall have to maintain your regular payments. The best to go about it is to request for a small loan, then pay for it on time.
A final step is to ask your friends to allow you to put one of their lines of credit under your name. Accounts with good credit scores will help out your case, when they are reported under your name.