Remedies for a Bad Credit Score
A low income hampers your ability to be in control of your finances. Budgeting for what you have earned as well as having an impressive credit ranking will help greatly in bringing sanity to your financial world.
As far as credit rankings are concerned, it is quite easy to harm your ability to borrow. Many of us do not know the damage we constantly inflict on our credit ratings. These people need to focus on how to minimize the 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 length of time it takes is determined mostly by the depth of the damage.
A the logical starting point is opening a bank account. You are required to have this provision when you commence your rebuilding journey. It may be difficult for you to find enough cash for this purpose, but during your assessment, if one is not seen, the results will be even poorer. 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. 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. Once you are at a stage where you have either cleared them or are regularly paying their installments, you can now begin actively promoting your credit score.
Strive to have the installments paid in time. This safeguards all the progress up to that point. 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. A a secured card is the only viable option when your rating is poor. The security required can be a deposit made to the account or some other acceptable form of collateral. 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.
After arriving at this stage, you then need to get a small loan. Regular payments will reflect well on your image. Borrowing a manageable sum and clearing its payments is the wiser strategy.
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.