We live in a world where credit is a definition of who we are. Our credit is examined when we rent an apartment, when we want to hook up cable or Internet, when we want to purchase a new cell phone and put it on a contract, or even when why apply to a job. Our credit is essentially a number that many consider to represent our worth, so you can see why having a poor credit rating can be extremely damaging and detrimental to your life.
In today’s tough economy there is a rare few of us that aren’t suffering from a damaged credit score. If you’re one of the few that has stumbled upon (or rather fell into) some poor credit, do not lose hope, there are still many options available. “Like what?” you’re likely mumbling because you feel as though life is hopeless. Everyone looks at you differently when they know that your credit score is less than favourable, you’re likely embarrassed to even be reading this article. You’re here so you might as well make the best of it, here is some things that can help you to rebuild your credit score and to prevent yourself from falling down the same path again.
The most important thing to do when you have poor credit, is to start building some good credit. While you may be in a state where no one wants to give you a credit card, there are some options. If there is an item that you want, say for example a lap top, you can choose to pay monthly with the assistance of a “high-risk” company. What this means is that, you will be paying monthly but your Interest rate will be higher. If you pay monthly however and keep on top of it, you can start working toward creating better credit.
There are still some credit card companies that except people with poor credit. They will also likely have a higher interest rate but in the end it would help you out immensely. Be careful in applying to these credit cards however and apply to one at a time. Sometimes companies enjoy preying on those that are in weak and desperate situations and will end up making matters worse for you. Be weary of where you apply and try to do your research first. The best advice though, is to avoid credit cards because they were likely the problem to begin with. If you want a credit card for online purchases then consider a Prepaid Credit Card which you can load and never need to worry about spending more than you have.
You also need to make new spending habits. You should no longer charge your credit card for things that you cannot afford, and no longer just make minimum payments (often leaving you with heaps of interest to pay off). Be a smart shopper and and even smarter customer. Pay your bills on time (or ahead of time) in full if possible. Try to prevent yourself from having any debt, especially any debt that carries over for months and months. Remember to stay below your credit limit (as much as possible) and to remember the suffering that you have gone through with your current poor credit.
It’s not an easy task to repair poor credit and often takes a significant amount of work. It is important that you put in the time and effort to speak with a financial advisor and to do your research on all companies that you consider looking into for assistance. Poor credit is no laughing matter and should be addressed and managed in a serious, responsible manner. Take responsibility for your actions and work toward improving your credit, no one else will do that for you.