The number of people with officially “poor” credit ratings is growing. Bad credit can wreak havoc on a person’s financial stability. A person with a poor credit rating will have a hard time securing loans, renting homes or apartments, or getting approved for credit cards. If someone with bad credit is lucky enough to get a credit card, he will most likely have to pay interest rates that are much higher than the norm. Being saddled with bad credit can cost a person thousands of dollars in interest on mortgages, and at least hundreds of dollars on car loans. Also, many people do not realize that credit card companies will raise the APR of a person whose credit goes south during his time as a member. This can occur even if he has consistently made his payments on time and in full.
Improving Bad Credit
There is not one simple way to improve bad credit quickly. However, there are several steps a person can take to get back on track. One of the most basic things a person can do is to secure one of the many credit cards designed to help people with bad creditreestablish a solid credit rating. Professional credit counselors can help a person develop an overall strategy for improving bad credit. A counselor can set a realistic budget that will encourage disciplined spending. After visiting with a counselor, a person will have a much better understanding of what goes into a credit score, and he will also have a firmer grasp on what he can do to raise that score.
“I’m willing to work with my credit, step by step.”
“Bad credit” cards, debt consolidation loans, credit counseling–there are many avenues that a person with genuine eagerness to repair his credit can take. Credit cards for bad credit or debt consolidation programs have led many people further down the road towards financial disrepair. But for people who can steadily work with the funds these resources can provide, a way to improved credit is possible.
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