My blog focuses on Financial Literacy/Money. Ideally everyone will cruise through life with sparkling clean credit, but that doesn’t happen for some people. It isn’t the end of the world financially though. The following contributed post is entitled, How To Make It With Bad Credit.
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A big part of discovering the truth of your finances as you get older, more responsible, and start planning for the future is that you find out your bank balance is far from the only thing that matters. Whether you’re buying a new car, trying to put down a loan on a house, starting a business, or even trying to rent or start a job, your credit can have an impact. So, what do you do if you have a bad credit history or no credit history at all? Is it really such a dead end? Here, we’ll explore your options.
Get Your Budget In Order
One of the realities of living with bad credit is that you have fewer options when the chips are down, metaphorically speaking. You may not be able to access funds and credit cards as easily as others might, and, as such, you have to get a lot more effective with your cash flow management. Start by creating a detailed budget that breaks down all of your needs, including rent, food, and utilities, while setting aside your “wants” like subscriptions or dining out. This way, you can much more easily start cutting costs when you need to. Overspending can easily lead to finding yourself having to rely on costly measures such as payday loans.
Know Your Options When You Need Cash
The one time that you’re likely to really rub up against the truth of having bad or no credit is when you need to borrow money. Whether it’s to make house payments, to pay out for repairs, or other important expenses, there may be no alternative but to get the cash that you need. However, your credit score is not the only thing that you rely on. For instance, you can compare secure loans that may allow you to put down some collateral, such as property or vehicles. This can allow you to still get access to loans with reasonable repayment terms, just make sure that you’re borrowing with intention, paying in full what you owe, when you owe it.
Build Your Credit Score
The reality is that as long as you have bad credit or no credit history, you’re going to be at a disadvantage. Having options is good, but having more is better, so you need to improve your credit card score. Paying all of your bills before their due dates to build up a solid payment history, reducing your existing debts, and being mindful about when and why you open credit accounts can all help you steadily build up your score. Be sure to get a free credit report check so that you can keep an eye out for any marks on your record that could be disputable, as often companies can get it wrong and penalize you for something that isn’t actually your responsibility.
Bad credit does not have to be the be-all and end-all of your financial potential. However, it doesn’t matter a lot. For that reason, you should start working on improving it with the tips above.
