A bad credit score can limit your loan options, make it difficult to buy a house or rent an apartment, and even hinder your job prospects. Regardless of why your score is suffering in the first place, there are a few easy ways to get back in the good graces of the major credit bureaus—even if you have limited funds. With these tips for increasing your credit score, you can get back on your feet in less time.
Make Arrangements to Pay Off Your Debts
Yes, we understand. If you could afford to pay off those old debts, you wouldn’t have poor credit in the first place. Still, if you just make an effort to work with one or two of the creditors holding you back, you might be surprised at how quickly and effectively you can improve your credit score through debt management.
One of the best tips to improve credit score: if your problem is crippling student loan debt, you may qualify for the Department of Education’s loan rehabilitation program. By agreeing to a small monthly payment plan, you can have some of the interest wiped away and achieve almost immediate good standing for your loan. Within a matter of months, you can see your credit score increase dramatically—as long as you continue to make your payments on time. Credit card companies are also willing to provide you with favorable deals in many cases.
Improve Credit Score With a Secured Credit Card
If your bank won’t issue you a credit card because of your poor credit, they may still be willing to offer you a secured credit card. It works like this: you pay a sum of money up-front, and that sum becomes your credit limit. For instance, if you invest $1,000 for your secured credit card, you can charge up to $1,000 before reaching your limit. Your investment serves as your collateral, so there’s no risk to the credit card provider.
The benefits here are twofold:
- You gain access to—for all intents and purposes—a real credit card. It’s accepted wherever standard credit cards are accepted, and it’s available to you regardless of your credit score.
- You get the opportunity to build up your credit score. As long as you make your payments on time, it’s the same credit score benefit as having a standard credit card.
Most major banking institutions offer these types of cards; ask your bank about the options available.
Apply for a Loan for Low Credit Score
This one might sound like a catch-22, but many lenders actually will work with borrowers who have less-than-perfect credit. It doesn’t even matter what you use the loan for. It may be used toward other debts, or it may strictly be a recreational loan. As long as you make the payments on time, your credit score will improve.
Superior Financial Services offers loans that may improve your credit score. If you live in Tennessee and need money to pay off existing debts or cover other expenses, we may be able to work with you. We have loans for any credit, and we can get you your money in as little as one day. Contact us on our website or visit us at one of our convenient branches to learn more.