Bad Credit survival Guide

Bad Credit Survival guide

You need to be aware that a bad credit score can affect many aspects of your life. You face difficulties in getting a home loan; the insurance premiums are higher, difficulty in getting a job or even getting a business loan. Immaterial of the multiple negatives faced for bad credit you have many people facing this problem. Listed below are some basics of bad credit survival guide to help you sail through difficult times.

1. Secured Credit Card:

A secured credit card works out apt for working on getting a good credit. There might be a requirement for collateral for this credit card but is totally worthwhile for building the good credit you so need. Ensure the payments are made on time with this credit card. This secured credit card is a boon for those facing bad credit. This can help you build a credit history which is positive.

2. Building Credit Habits:

To ensure you do not face problems with the bad credit you need to build habits which are considered ‘good’.  This is one of the major steps advised as bad credit survival guide. It is important to stay well above the credit limit given. It is better to pay off cash as and when possible so that there are minimum charges for the credit card you own. Make sure you pay off the total outstanding of the credit and not partial payments.

3. on-time Payments:

You need to be aware that almost 65% of the credit score depends on the payment history and obviously, it is important to make sure you make the payments on time. Besides being able to control the mounting payment, it also indicates your willingness and ability to make the payments.

4. Getting a Credit Report:

You need to have a copy of the credit report on a regular basis as there are chances of mistakes being made. Bad credit survival guide stresses on this factor.

5. Credit Reporting:

You can inform all the credit companies you pay your bills to, to inform the credit bureau of these payments. This helps in improving the credit score and the credit report.

6. Large Expenses delayed:

There is no urgent requirement of big loans to be taken when you are facing problems with the bad credit. Fancy buying can be kept on a hold.

7. Reminders and Auto pay options:

A bad credit survival guide enforces the need for setting up the options of auto pay and also reminders which can be helpful especially to those who lead a hectic life-style and forget to pay their bills on time.

8. Missing a Payment:

Missing a payment is like adding fuel to the fire. It is bad enough not to pay the bills on time but missing out on payments means the balance is transferred to the collections department.

Listing out the different ways you can transfer the bad credit into a good credit is the bottom line for the bad credit survival guide.