Bad credit can happen to good people. While it can certainly be a limiting circumstance, you don’t have to let it dictate the decisions that you make. There are ways to improve your credit score and even get financing for many of life’s more expensive essentials.
As long as you are informed about the opportunities that are available for people in difficult credit situations, you can both recover and thrive. Here are some tips to help you navigate your credit situation.
Second chance auto sales
Not everyone lives in a metropolis with a great public transportation system, meaning that you need a car to get to and from work. Bad credit makes it hard to get financing for a vehicle, but it doesn’t make it impossible.
Second chance auto dealerships will work with you regardless of your credit situation.
You can get a low down payment and low weekly or bi-weekly payments. Even though your job is your credit, many of these dealerships report on-time payments to the three major credit bureaus. Also, many of these dealerships offer great car maintenance services to their customers.
The key to maximizing the benefits offered by these types of car dealers is making on-time payments. While they may not report late or missed payments to the credit bureaus, they can still repossess your car. Plus, many second chance car dealerships place devices on their cars that allow them to shut off your car electronically.
Bad credit can make it nearly impossible to get a conventional loan. Payday loans are ideal if you need $100 to $1000 but are in a precarious credit situation. These are short term loans, meaning that you can be done with that debt quickly. They don’t check your credit. Their main concern is that you can prove that you have a steady source of income.
Online payday loans are even more convenient. You can apply in about 5 minutes from the comfort of your home. Many of them debit the money into your account on the same day. Just like with regular over the counter payday loans, your proof of income is your credit, and they electronically withdraw your payments from your account.
Car title loans
Car title loans are another way to borrow money, even with bad credit. With car title loans, you hand over the title to your car in return for a loan. Prior to lending you any money, they will assess your car and determine its value (to them). The loan amount will be around half the amount of the car’s actual worth. It is a short-term loan, but they will give you up to a year to pay it off.
Student loan forgiveness
Student debt can loom over your head like a dark cloud. The government actually has a plan to help you manage that seemingly insurmountable debt. This program is called the Pay As You Earn program, or PAYE.
More than an actual debt forgiveness program, it is a repayment plan. The amount of your monthly payments is determined by your family size and income tax returns. The amount that you pay monthly will be 10 percent or less of your discretionary income, or less. You will have to have your payment amount assessed every year, but after 20 years of making these payments, your loan is forgiven.
As you can see, even with bad credit, there are ways to manage and improve your credit situation. There is no one-size-fits-all solution for bad credit, and the key is to evaluate for yourself which one of these options is best for you. Whichever route you take to reclaiming power over your credit, make your payments on time. In the end, you will be relieved as well as proud proud of yourself.