Five things you should know about bad credit

Five things you should know about bad credit

Hello, everyone!

Your credit rating will determine if you are eligible to get loans and mortgages. People who have bad credit may find it hard to get financial help from major financial institutions. You may learn more about credit rating and how to improve it at https://www.crediful.com/. There are a few things you should bear in mind about bad credit. They can help you to avoid bad debts or improve your current credit rating. Remember bad credit rating affects your insurance, mortgages, and amount of deposit required from you for rentals and utilities. It is therefore important to improve your credit rating so as to save some money as well as access various financial facilities.  

Here are 5 things you should know about bad credit:

1. Credit score

A good credit score ranges from over six hundred. If you score less than that, then you have a bad credit rating. Several factors including the number of your credit accounts, the payment history, and how much you still owe creditors determine your score. Most financial lenders use a credit rating calculator to calculate your credit rating. This determines your credit worthiness and their decision to give you loan will be based on your credit rating.

2. Ways to improve bad credit

If you have a bad credit rating, you should not despair. You may take various measures to repair it. There are many advantages to having a good credit rating. The main advantage is the ability to get loans and mortgages fast. You also get car and health insurance at lower rates.  Good credit rating also ensures that you do not have to deposit a higher amount for your rentals and other utilities. You may seek professional guidance on how to avoid late payment charges, remove charge-offs foreclosures and tax liens. All these measures and many more will help to improve your credit rating. 

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3. Bad credit loans

Even with a bad credit rating, you may still access loans. Most people do not know that there are many lenders willing to offer them financial help despite their bad credit rating. You may get a personal loan, mortgages or even an auto loan from such lenders even with a bad credit rating. Their main concern will mainly be your ability to repay the loan. You should have supportive documents to show that you are capable of repaying the loan.

4. Dept relief

One of the main things that can help you improve the credit rating is debt management. You should look for ways to pay up existing debts. In some cases, you may also apply for debt relief. Strategies such as the declaration of bankruptcy can also help to improve your credit rating. You may seek professional help in debt management through various financial institutions

5. Investment options

Even with a bad credit, you should not avoid investment. There are various options for you. You may refinance your home, mortgage or any other existing loan. A professional advice on investment options can help you get out of debt and create more wealth. When you identify a financial advisor, you will access a wealth of information regarding finances. This helps in wealth creation and debt management.

How do you handle bad credit? Let us know in the comment section below.

As always, thank you for visiting and have a great day!

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10 Comments

  1. February 3, 2019 / 4:56 pm

    I’ve always had decent credit but my husband definitely struggled for awhile with the amount of debt he’s had. He finally turned a corner within the last 2 years and it’s a relief, especially with me needing a new car this year!

  2. February 3, 2019 / 5:51 pm

    Luckily, my husband and I have always had very good credit. We have very little debt to income ratio and the only thing on our credit right now is one vehicle. I have a few family members with low credit, though, and they’ve had more of a struggle but have gotten it sorted out now.

  3. February 4, 2019 / 1:51 am

    My husband has always decent credit but mine is a bit lower because of past medical bills that we are finally in a place to pay off. We are currently both working together to pay off debts and get closer to being debt free each month.

  4. Zerin Hassan
    February 4, 2019 / 2:11 am

    LOVE This I have started reading and finished in three days the Barefoot Investor. Credit Cards are evil! haha

  5. February 4, 2019 / 5:57 am

    I don’t have a family yet but I have little debts especially here in Philippines the salary is not enough for my needs so tendency we need to loans money for other expenses. Great post

  6. February 4, 2019 / 5:03 pm

    This is great advice… thankfully it’s not something that has ever affected me, but I know it’s an issue for many people.

  7. Jessie
    February 4, 2019 / 5:29 pm

    Good advice. I think teaching our students at an early age is so important when it comes to credit. Often, we neglect that piece and wonder why so many people are in debt and having a rough time fixing their credit scores.

  8. February 5, 2019 / 3:09 am

    This is an important post on a topic affecting so many people. I’ve been fortunate to never struggle with this personally, but I know many people have…my father grew up during the Depression, so he taught us from birth to be extremely frugal and never spend money unless we had it in the bank to cover our purchases, even if they were made on credit cards.

  9. Elizabeth O
    February 5, 2019 / 4:52 pm

    Debt, death and taxes and a common given in this society. With so many living from paycheck to pay check, sooner or later illness or a change creates poor credit. One can rebuild with patience and discipline.

  10. February 6, 2019 / 3:48 am

    Yeah, I do know that credit scores affect so many things in life. I just wish I were better at the saving part and then I think I would do better credit wise because I would be better on having the financial resources to afford things. And do more to make a larger down payment on items.

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