A bad credit score can hamper your chances to do a lot of things in. From buying a home to getting a loan for a car, having poor credit can even impact your ability to buy items at a department store on credit or book a hotel room when you’re out of town.
You don’t have to just live with a bad credit score though. Use this guide to help you learn more about improving a bad credit score, so you don’t have to worry anymore.
Get a Secured Credit Card
Many people who are either trying to build or rebuild credit simply can’t get a card from a credit card company or lender. Without a credit history, it’s just downright impossible in some cases.
A secured credit card that allows you to make a deposit will help build credit. Eventually, you’ll be offered an unsecured card if you show that you can make payments on time and that you’re a trustworthy borrower.
Pay Off Debt
Paying off debt might sound like an obvious way to improve your credit score, but you would be surprised how many people just don’t do it. Even if money is tight, making payments above the minimum can help boost your score.
Ideally, you want to be using about 30% or less of the credit available to you, with payments on time every single month.
If you’ve got bad credit and an interest rate that’s killing you, one of the best things you can do overall is to simply pay off those credit cards. In some cases, a short-term payday loan could help you do that.
However, if you do choose to get a payday loan, you’ll need to have a plan to pay it back. You don’t want to simply trade delinquent credit card debt for payday loan debt that you aren’t making payments on in a timely fashion. Doing that will hurt your credit and won’t allow for quick repairs.
Guide: How to Repair Bad Credit Scores
How You Can Effectively Get Payday Loans on Bad Credit
How to Improve Your Credit Score for Better Financial Health
Things You Should Understand About FICO Credit Scores
6 Ways to Get Your Free Credit Score in 2018