You think that escaping a bad credit seems impossible. People with fair or medium credit are often used as a reference to determine a credit score. These people, who are still getting bank loans and credit cards, can use these elements to improve their credit with a relatively simple strategy. But, what happens if your credit reaches the “mediocre” category (less than 580)? Or if it falls in free fall near 300?
You will consider a step-by-step approach. So what action will you take first to improve this credit described as “poor” or even “bad”?
Organize your finances.
First of all, you have to organize your finances. Forget your credit score for now. And if you want a loan or a credit card, you will find that after following the first step, there are some ways that you can get loans even with bad credit.
First and foremost, make sure you earn a stable income. It does not matter how much you pay, as long as you receive a pay check periodically. Why is it so important? First, it will help you cover most of your daily expenses and it will save you from applying for a loan or a credit card.
But, if a loan remains necessary, you will consider a personal loan online. It depends on your ability to repay not just your credit score. The lender will likely approve your application if you submit a pay stub and a bank statement. If you have bad credit, the online loan remains a way to borrow without having to apply for a credit card.
Save what you can.
Now that you earn a steady income, you can start saving. This will help you restore your credit rating. In addition, this money saved will allow you either to pay cash instead of borrowing OR to quickly repay a personal loan online if you have one. A little money saved is always better than nothing.
Ask for a secured credit card.
The next step is to get a secured credit card. To do this, you use a portion of your savings to pay the required security deposit for this card. You can use it as you wish once the money is deposited. You will use this card for small purchases that you will pay immediately. In this way, you will establish a positive credit history. This card should not be used to borrow money that you will not pay immediately. Instead, continue to use personal loans online if you borrow larger amounts.
Opt for a “regular” credit card (but do not change the way you use it).
Finally, your strategy will allow you to obtain a “regular” credit card without a guaranteed deposit. To continue to improve your credit rating, you will immediately pay for any credit card purchases and use personal loans online when you borrow an amount that you can not repay immediately.