The catch-22 about bad credit is that making it better requires loyal payments towards loans and credit that are almost impossible to get when your credit is poor. You might be well on your way to better financial days and have learned from your borrowing mistakes, but putting those lessons to practice is difficult when nobody wants to lend to you. You’re options are very limited. In worse situations, this could be alarming. You could be bobbing bait for loan sharks and predatory credit card companies. But if you’re financially secure and have become a responsible borrower, then consider these things to be a frigate of protection on the high seas of high interest loans and credit that can help you re-establish a strong financial record.
1. Responsible Credit Card Use
The weakness of credit card companies that unfortunately results in further personal debt for most people is that there’s always one that is probably willing to give you a credit card so long as you haven’t declared bankruptcy. But this can be an easy way for you to build credit. Taking out a low-limit relatively low-interest credit card and using it for filling up the gas tank and paying off the bill every month can improve your credit profoundly in enough time.
2. Title Loans
It’s pretty much a golden rule in personal finance that you avoid taking a car loan out unless you can pay it off in-full as soon as possible and avoid the explosive interest rates. If you can pay off a $2-5K loan in a month, simply by moving money around and not spending what’s loaned to you, why not? Browsing online title loan sites is a great way to research the terms and agreements each individual lender offers to find the best place to go about using this tactic. Just make sure they report to all three credit bureaus.
3. Cast Out Use of the Aforementioned in All Other Situations
Never use credit cards unless you can pay them off by the end of the month. Avoid car title loans and other high interest ways of getting access to credit unless you absolutely must and can absolutely pay the loan off. Start saving your money. Be your own bank. The best way to avoid bad credit is to never take any out you can’t secure a way to pay back immediately.
This guest post was brought to you by Trading Financial Credit, LLC. They provide short term loans if you own your own vehicle.