Bad credit scores are the most common reason why people are declined when they apply for loans or credit cards. A bad credit is a result of earning too less and spending too much. A pile of unpaid debts or owning multiple unpaid credit cards will also give you a bad credit score.
But what if a few months from now, you’re expected to have a baby or would have to send your child to college, how are you going to pay those bills right away with your low income and bad credit score? I will share some tips on how to get out of that bad credit status.
Start with yourself
Yes, you! For you to fix that bad credit status, you must first fix yourself. Try to get a better paying job, do overtime or triple shifts in order to increase your income. A person with a good income will have a better credit score and a higher chance of being approved when applying for loans. This is because the money lending center would see that you are already capable of paying your debts.
Do better this time
Now that you know where you’ve gone wrong, it’s time to do better. Start with applying for a new credit card, but this time you should not let your debts pile up and pay it on time.
Don’t worry that no money lending canter would approve your application because some of them will. There are bad credit loan centers that will be willing to help. However, because of your bad credit status, these loans would be given at a higher interest rate but they could still help you start anew and prove that you can pay your bills well this time.
Start thinking twice
At this point, you should already know that buying more than what you need is not good for your credit status and so as you enter a store, you must already know your priorities. Don’t be tempted with the power that your credit card can give you. You should buy only what you need and what you can afford. I know that it’s hard to resist the temptation of buying a piece of that summer collection, but you should think twice (or trice) before taking out that credit card. Is that piece of item worth it? In exchange for your luxurious fashion items and gadgets, would you risk the future of your children? Or will you trade them for your dream home? Of course not, right? And so you must always think twice when you go shopping.
Start will yourself, do better this time and start thinking twice, now that you know how to start getting out of your bad credit, you are just a few steps away from having that good credit score and having a better financial status.