A Bad Credit Rating – What to Do When You Have One
There are many of us who change as we get older. I know there are a lot of things that we did when we were younger, and maybe they were not the most responsible of choices. This is something that we all have to live with, but why should we not try to fix it. If you messed up your credit rating when you were younger, all you really need to do is change your habits. The banks will forgive you if they think that you are turning into a responsible adult after all these years.
The first thing you need to do is quite obvious. You need to make sure that you pay your bills on time. This does not just mean your credit card bills. You would be surprised at all the factors that go into a bank figuring out your credit score. When you pay the light bill late, it effects your credit score. They assume that if you don’t have money to pay the electricity, then you probably don’t have money to pay off a car loan. So really, the best thing you can do for your bad credit rating is to pay your bills on time.
A lot of us have trouble paying our bills on time because we are living a lifestyle that we simply can’t afford. This is a very dangerous notion; it leads to bankruptcy and other financial problems that will ruin your credit. Maybe the real key to making sure that you have your life in order and that you can fix your credit score is just toning back a little bit. Perhaps you go out to eat to much? Maybe its time to learn how to make some of your favorite dishes at home.
Remember, another great way to improve your credit score is to take simply out a loan that they will let you and pay it off on time. I know you might not be able to get the loan you want with a bad credit score, but I’m sure they have something they will give you. Once you prove to them that your good for paying off that loan they won’t be so nervous about giving you a bigger one. I know you want that fancy new sports car, but if you want it you’ll learn to settle for the old sadden until the bank trust you again.
Please remember not to apply for to many credit cards. This is a problem that leads to your losing track of your finances. I know it can be tempting and it does seem like free money to some. But, its not, you will have to pay it back. If you have to many credit cards that you have charged with money they might be hard to keep track of. This means that you will not know how much money you owe the credit companies. By the time its time to pay you might find out you don’t have the ability to pay off the large sum that you thought was much smaller.
Please don’t try moving while you have bad credit. Banks just love it when you stay with a house and complete its mortgage. They will figure the person who does this to be financially responsible and will trust them with future loans. And besides, banks always hate it when you come to them and tell them that you need another loan because you want to move for almost no reason. The key to having good credit is to please your bank.
I hope you take this financial advice to heart. Just think of all the neat things that you will be able to get loans for once you follow this. Have you always wanted a boat so you and the family could go fishing? Well, you will be able to get a loan for one if you have a great credit score. There are other reasons why having a good credit score can make or break it for your family. Please make sure you do all the research you can and find out why life is so much better when your credit score is.