It is estimated that about 30% of Americans today suffer from the effects of their bad credit scores. People don’t often realize that they should have a good credit rating until they try to lease or buy something.
Once they find out that they have a low credit score, you could have to questions on your mind. The first being how can I raise my credit score and the second being are there ways I can get around with a bad credit score.
Thankfully, you don’t have to let your bad credit score keep you from living the best life that you can live. There are lots of methods that you can do to raise your credit score or be able to purchase the things that you want.
Here, we will teach you about the tips and information that you need to know about bad credit.
How Did I Get a Bad Credit Score?
More often than not, people may not even realize that their credit scores are bad. Until they check their credit report.
This may come as a surprise to them, because they may have never taken out or even applied for a loan before.
This is because you don’t have proof that you were able to pay back a loan, so your credit score is already low.
Another common reason as to why you may have poor credit is because you weren’t able to pay back your bills or loans on time.
This will also include things such as taxes and if you have declared bankruptcy in the past. All of these things can pile up and give you a low credit score, there are even times that doing just one of these things, but on multiple occasions, can lower your credit score.
How Does Bad Credit Affect Me?
Having bad credit scores can affect you in a lot of ways. For one thing, it can lower your chances of getting approved for loans.
Many lenders or banks would take a look at your credit score and might be hesitant to lend you money because they might think that you might not be able to pay it back. You might find yourself getting denied a lot.
Thankfully, you can find lenders that offer loans to people with bad credit, but this will not guarantee that you will get approved.
How Can I Fix My Credit Score?
Having a bad credit score doesn’t mean that you will be stuck with it forever. There are tons of ways that you can raise your credit score.
Many of these tips are quite simple and easy to follow. Just be aware that it will take some time to do so and that it definitely won’t happen in one day.
Be sure to stick to these tips if you really want to try improving your credit score.
Take a Look at Your Credit Cards.
One of the things that you have to look out for are what your credit card balances currently look like. You will want to make sure that your credit card balances are as low as possible.
The ideal percentage that you want to keep it is at about 30%, but try to aim for something lower than that.
If you can, you could try to take out a loan to help you pay off your balances in full, but be sure that you will be able to pay back that loan as well.
Another thing that you should be aware of is that you should use multiple credit cards to buy an item. It can cost you a lot more in the long run because of interest rates, plus it can be more damaging to your credit score.
Be sure to try using one credit card for a single item as much as possible. Along with that, you should also try to refrain from making any large purchases that would require long term credit card payments while you are trying to raise your credit score.
Don’t Hide the Past.
As soon as you get to pay off some old debt, you might want to rush out and get it erased from your credit report as soon as possible.
However, if you had what would be considered “good” debt, which is when you took out something like a loan and were able to pay it back with no issues, isn’t something to hide.
If you keep the good debt within your credit history for a long time, it will reflect well and will help you improve your credit score.
Don’t Miss a Payment.
One of the more obvious ways that you can raise your credit score is by making sure that you don’t miss any payments when they are due. Of course, this is a habit that you should always try to have.
Something as simple as making sure that your rent and electric bills are paid on time can be a great way to raise your credit score.
Can I Still Get A Car?
One of the issues that people with poor credit face is the ability to buy a car. Of course, you can always try to apply for a car loan even if you have bad credit to buy a car but it would be more difficult to get approved for it.
One of the most common ways that people with bad credit can get a car is to get bad credit car leasing. Leasing a car with bad credit is entirely possible and it is probably one of your best options if you really need to get a car for things such as work and general transportation. A car lease means that you will be leasing a car with low monthly payments because you are considered to be leasing a part of the car. However, once the lease term is up, you will have to return the car.
Leasing a car is one of the quickest ways that a person with bad credit can get their own vehicle. However, keep in mind that your bad credit can cause people to charge a higher interest rate. Be aware that it may still be hard for you to get approved to lease a car, but it will be easier than trying to get a car loan with bad credit.
However, you could also try to get a lease takeover, which is where you take a lease from someone else who couldn’t meet their payments, because they are much easier to get approval for. If you want to get approval easily, one of the best tips that you can follow is to apply for a lease with an inexpensive car.
Inexpensive cars are usually easier to apply. Because of their price, so they might approve you if they see that you are capable of paying for it. Another good tip that you should follow is that you shouldn’t just at the first dealership that approves you, you should take your time to look at all the possible options that you have. Better to check you never know when a better price or better terms of agreement for a lease could be waiting in another dealership.
Please be aware that you still have options even if you have a bad credit score. You can still be able to do things like get a car loan or a car lease. You just have to know the ways to get around your low credit score and see what options are available to you in car dealerships and from lenders. Also still try to raise your credit score using the tips mentioned above. If you follow the information and steps, you can have a good credit score within one to two years.