Restoring Your Good Credit
We have talked at length about obtaining a bad credit auto loan, but lets shift gears and talk about restoring your credit situation so that you can get a regular auto loan in the future.
Why Do I Need a Good Credit Score?
Having a good credit score is paramount in the United States today. Your credit score is used for nearly everything in your adult life – not only loans but jobs and housing as well. People with good credit have no trouble getting automobile loans, credit cards, jobs that require a credit check, and housing because they have shown they have the ability to pay their bills on time. A high credit score shows the world that you manage your money responsibly.
Does a Bad Credit Score Hurt Me?
Bad credit ratings on the other hand will limit your opportunities and put you into higher fees and interest rates on loans – that is if you can get them at all.if any at all. Worse yet, prospective employers and housing landlords will look at your score to see if you have paid your bills in a timely manner. Bad credit really affects everything in today's society.
How Can I Turn This Around?
So… turning your bad credit situation into a good credit situation is hard but it can definitely be done. The first step is to pay off your lingering debt, either by bill consolidation or a credit counseling payment plan that you can stick to. Next, you should open up a savings account and put some money in it every time you get paid. A secured or prepaid credit card can (funded by your new savings account) can help you boost your score as well.
The Damage Is Done
Be aware that bad credit information will remain on your credit report for 7 to 10 years. Because of this, repairing your credit score will take some serious time and require real determination. It’s important to learn wise money management skills along the way and develop financial responsibility to maintain and increase your score.
Conclusion
Yes it takes time, but the opportunities afforded to people with good credit scores makes the effort worthwhile. With determination, no bad credit problem is to bad to fix - it just take desire and dedication. There are no quick fixes here unless there is faulty information that is showing up on your credit report.
Related Posts
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Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
- Bad Credit Auto Loans Blog
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Timely post... a lot of people can benefit from this information.
ReplyDeleteVery Helpful!
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