What To Do If You Have Bad Credit

If you’re looking for invaluable tips on how to effectively repair your damaged credit score, simply continue reading to discover 6 simple ways to increase your credit rating!

What to do if you have bad credit?

1. Try to consolidate your individual loans into a single loan

If you currently have a multitude of loans, which you make payments on each month, examples of which may include credit card debts and a car loan, you will be able to significantly decrease the amount of interest, which you’ll pay on your debts over the coming years by consolidating all of your separate loans into a single loan. It is important to keep up with payments as much as possible so that your credit rate doesn’t continue to decrease. In this situation, you may need additional safe loans till payday to help you cover your next upcoming payments.

2. Make an effort to pay off new credit card debt before the end of each month

Contrary to popular belief, there’s no need to cut up your credit cards, just because you have a bad credit rating. Instead, you can start to repair your credit rating by paying off any new credit debt before the end of each month. As if you can show credit card companies that you can be counted off to pay off your credit card debts early, you should find that over time your credit rating will start to increase again.

3. Limit yourself to using 1-2 credit cards

If you are worried that you’ll find it difficult to pay off new credit card debt by the end of each month, it’s a wise idea to consider limiting yourself to using 1-2 credit cards. As it’s difficult to keep track of multiple credit cards and the charges which you’ve made to each individual credit card. If you do limit yourself to 1-2 credit cards, which have low limits, you should find that you’ll decrease the amount which you spend on your credit cards each month.

4. Prioritize your oldest credit accounts

If you are tempted by the idea to limit yourself to 1-2 credit cards and are unsure of which credit cards to get rid of, it’s well worth keeping your oldest credit accounts open. As around 15% of your credit rating is tied to having well-established credit accounts, which you’ve made consistent payments on for several years.

5. Consider turning to a credit union for help if you find yourself in hot water

If your credit score is abysmal, you may be able to apply for a credit builder loan from a reputable credit union. As credit unions are often willing to give out loans to individuals with poor credit who are able to demonstrate that they’ll be able to pay off a credit builder loan.

If you’re interested in obtaining a credit builder loan, it’s well worth printing out evidence of your income payments, to prove to possible credit unions, that you have the means to pay off a new credit builder loan.

6. Be patient

In order to reverse years worth of bad credit habits, which have taken a toll on your credit rating, you’ll need to implement good credit habits for several years in order to see a marked difference in your credit score. However, you should be able to increase your credit score slightly within a year, with hard work! The simplest way to check your credit score at Experian.

So what are you waiting for? If you want to fix your damaged credit rating, it’s well worth implementing all the helpful credit tips that you’ve read above.