Having a bad credit score puts you at a huge disadvantage when it comes to needing to borrow money, acquiring insurance, hooking up utility services and in some cases, it can even affect your ability to land your dream job. Since most anything you want revolves around having a good credit score, it’s important to maintain it and protect it from identity theft.
Where to Turn to for a Loan
Luckily, despite having a less than desirable credit score, there are companies that are willing to offer small loans to get you through a financial difficulty. Cash advance loans available through mainly online lenders use more than your credit score to determine whether or not to grant an approval. They base their decision on many factors such as having a full-time job, an active checking account and being a naturalized citizen. If you don’t want to take out a loan in the traditional sense due to your high debt, you can also ask a family member to grant a small loan with flexible repayment conditions.
What to do if Your Poor Credit Score is Not Your Fault
With identity theft on the rise, many people are unaware that their identity is stolen and then used. It only comes into play when you apply for a loan and get a rejection. That’s when you realize that something is terribly wrong. The good news is that this is something you can sort out and get the bad marks removed from your report. It will take some time, but in the end, you can get it resolved. A way to avoid this in the future it to sign on for protection through a credit monitoring service. This way if someone does try to steal your identity you will get notified and the agency will work hard to get it resolved quickly.
The High Cost of Having Bad Credit
Bad credit isn’t just a low score. It puts you immediately into a high-risk category by lenders. This automatically means if you are lucky enough to get a loan, you will receive it with the highest interest rate allowed. Unfortunately, the fees don’t stop there. Credit card companies will also increase your interest rate. To add insult to injury, if you rent an apartment and have to hook up utilities, the company may require a security deposit. If you pay your bills even a day late, you’ll have late fees assessed and if you overdraft your checking account, you’ll pay more money on overdraft fees.
Getting Back on Track
Ultimately, the first step in avoiding paying more than you should is to restore your credit as quickly as possible. Luckily, this is something you can do. Cut back on frivolous spending like morning coffee and afternoon lunch purchases and make both from home. Additionally, stop eating out altogether until you pay off some of your high debt. If you buckle down for a few months, you will see an improvement in your ability to make your payments on time. Take it a step further by reducing your cable to basic service, turning off lights, taking shorter showers and only running the dishwasher when it’s full. There are so many subtle changes that you can make to free up money that you can then use to pay off your debt faster.
Having bad credit affects every aspect of your life. Thankfully, you are in control of it. If your credit score is poor, take the necessary steps to get it back to a respectable level as soon as possible.