You can’t get the loan you need because you’ve got lousy credit.
Fortunately if you’re stuck in this kind of bad situation, there are some simple credit repair solutions available that can help you get back on track and in a better position to buy those things you wanted.
The Beginning of Your Credit Repair Solutions – Commitment:
First off, know that the only way to repair your credit rating is with diligence, commitment, and dedication to break bad spending habits. If you’re not ready to put forth the effort, then you can’t expect a change.
While there are lots of businesses that claim to be able to help you, no one can make the problems of your past just magically disappear. Anyone who tells you they can “fix your credit” can’t do what you already could do yourself.
Basically a business such as this just goes through your report and then makes claims to the credit bureaus on your behalf. That trick might earn you a few points on your credit score. But that’s about it. Beyond that all they do is give you a few pointers on how to make a plan to pay off your bills and budget better.
You could literally replicate what they’re going to do by getting your your credit report for free three times a year (once from each of the three credit bureaus) and disputing any inconsistencies you find without paying someone else to do it for you. The other part – the hard part of actually paying your bills and staying on track – is all up to you!
With that said, here’s a few things you can do help speed up the repair process:
Apply for a Secured Credit Card:
To build (or re-build) credit, you need a credit card. That can be pretty tough if you’re in trouble and are now being denied based on your history.
That’s where a secured credit card might be useful. Unlike a traditional credit card, a secured credit card uses some form of collateral in case you happen to default on your payments.
Don’t worry – you’re not putting up your house or car. Usually the collateral is some form of money like a small down payment.
One of the best ways to rebuild and repair your credit is to setup your monthly bills (the things you were going to pay anyways) on them with automatic payment. You may not realize it, but 2/3 of your credit score is based on payment history and how much debt you owe. So the sooner you start to make regular payments and wittle down the amount of debt you have, the sooner that FICO score will go back up!
Refinance with a Lower Rate Loan:
Not all loans are created equal.
Sometimes part of getting out of your bad credit card debt involves finding a different loan that is offering a lower interest rate. People do this all the time when they refinance their house. It’s the same principal.
Look for reputable offers for low interest balance transfers that you can work with. Make sure you understand the terms and conditions before you make the switch. Even some payday loans may provide you a better opportunity than what you’re currently paying.
Apply for a Debt Management Program:
If you’ve in way over head and things are looking like they might be out of your skill set, you don’t have to fight the battle alone. Consider finding a debt management program to relieve some of the burden.
A legitimate debt counseling agency can analyze your debts, explore your credit repair solutions, and put you into a debt management program to fit your situation. Fortunately there is no credit rating penalty for taking advantage of this service. If anything, it only helps to benefit you and those you owe if the program is a success.
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