A Guideline on Ways to Redeem a Poor Credit Rating
A low income hampers your ability to be in control of your finances. To maintain some balance in your finances, preparing a budget will be helpful, as well as having minimal debts and a positive credit rating.
As far as credit rankings are concerned, it is quite easy to harm your ability to borrow. It is hard for some us to understand the extent to which we risk our credit scores. They need to put some effort towards eliminating these risk factors. The circumstances of a few individuals are unfortunately presently terrible. You Also, need to consider how long the exercise may take. The the level of damage is directly proportional to the time it will take to restore your positive score.
Opening a bank account shall start off the process. This forms the basis of the whole rebuilding exercise. There will be a shortage of funds to send to the account, but not having one will cause alarm during assessment by the relevant authorities. It is to your advantage to have a few solvent ones.
The next activity is arranging to make payments for the existing debts. Reporting that you are bankrupt causes your debts to be written off. If your situation is not as adverse, then arranging to start payments of the amounts owed is the logical resolution. You are especially at an advantage if you can pay off a debt with one payment, as to shall get a significant discount to it. After working towards finishing the payments or making them regular, you can direct your attention to activities that will elevate your credit ranking.
Your installments depositing needs to be made well before time. This will minimize chances of you loosing your advantage in the struggle. It is the job of collectors to report on any late payments, as well as the history of any payments made. Them reporting positive patterns goes a long way in helping your case.
You should then acquire a secured credit card. A a secured card is the only viable option when your rating is poor. You are furnished with one after depositing an amount to your account as security. Maintaining the card well while you use it will ensure a good report and subsequently positive ranking. People fear credit at this juncture, but they are advised to have a little of it and be prompt with payments, which will better their score.
When you get here, arrange to have a small loan. Regular payments will reflect well on your image. Borrowing a manageable sum and clearing its payments is the wiser strategy.
A final step is to ask your friends to allow you to put one of their lines of credit under your name. Friends with great credit rankings are especially beneficial, as their lines of credit will make your reports look good, thus improving your score.