Whether you were late on a few car payments, carry a high balance on your credit card, or simply made a few questionable financial decisions in the past, bad credit can happen to anyone. You may feel like it is impossible to recover your score but if you take it step by step you will have nothing to worry about. In the mean time, here are a few ways to help you deal with a bad credit score.
Analyzing your debts
When you have bad credit, it is important to figure out what exactly hurt your score. Take a few hours to sit down and evaluate your current debt. Look at things like the credit cards you use and loans you have. How often do you use them and when do you make payments? Compare this to your average monthly income.
It is also important to consider your monthly expenses. What bills do you have? How much is your rent? Once you add up your essential monthly expenses, subtract them from your average monthly income. The amount that is left over should be used to begin paying off your debt. If this whole process feels overwhelming to you, don’t be afraid to ask for help from a trusted friend or family member, most people will be more than willing to sit down with you. If you don’t have anyone in your life you can turn to then seek help from free online forums.
Learning from your mistakes
Once you have figured out just what has given you a bad score and how to deal with it, you should reflect on the types of behavior that got you there in the first place. Perhaps you did a bit too much online shopping last year or maybe you bought a car with monthly payments higher than your income. Regardless of the situation, it is important to understand what actions lead to bad credit because it will help prevent you from making the same mistakes in the future.
Getting a loan
Sometimes regardless of how well you are doing to recover from bad credit, life can happen. In the event that you need money fast it is important to explore your options before opening another credit card or getting a high interest loan. Talk to family or close friends about borrowing a small amount of money. Explain exactly what you will be using it for and how you plan on paying them back.
If there is no one who can lend you money, don’t worry, you still have a few options to get money quick that will put you in minimal debt. Consider taking out a title loan on your car. Companies such as TitleBucks allow you to borrow up to ten thousand dollars by using the title of your car. This is a fast and easy way to borrow money if you have bad credit and you will still be able to drive your car. Just remember only borrow the amount that will help your current needs.