What They Aren’t Telling You About Bad Credit
For some of us, COVID hit our pockets hard. Prior to the lockdowns and being placed on short-time, I was trying to keep my head above water financially. After suffering an accident and some major expenses, keeping up with monthly bills almost became impossible and that is when I fell into bad credit.
My credit score was around 500 and only once I started pursuing different prospects did I realize just how my credit was limiting my life…
I applied for a new job with a higher earning potential, but my application was turned down because of my credit score. Can you believe it? My personal credit was now affecting my ability to get a new job!
Then I needed a new apartment but of course, with a less than perfect credit that was another impossibility. Fortunately, there are affordable apartments to rent where they won’t immediately dismiss your application for a lease based on your credit score alone. My good rental history and negotiating skills helped me find a cheap apartment, which was a major lifesaver.
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Time to Fix My Credit
With my credit creating havoc in my life, I started working on improving my score on my own. How hard could it be?
I did some research and found the first step was to get a copy of my credit report. I found some useful information on credit reports and scores on the US.gov site. So, I looked at my report for any errors which could be making my score worse than what it really was. These errors were queried so positive changes could be made to my report.
I suggest sticking to one credit report request. If multiple reports are issued, it can further affect your credit rating.
The next stage was to call my creditors to negotiate a payment plan that I could manage and that would keep them happy. What they don’t tell you is how your creditor simply couldn’t care less about your life story. I’m not saying they’re all like this and one creditor was quite accommodating after a few calls, but be prepared. Have your credit reports ready, have your proof of income ready, and show them you will pay regularly until the debt is settled. I understand it’s a business and at the end of the day they simply want what’s owed, but if you can’t afford the installment, rather speak to them about reducing the monthly rate and repaying over a longer period. Don’t get yourself into a worse financial situation by struggling to make monthly payments or not making it at all.
You may also be thinking of hiring a company to help build your credit. If you do go down this route, look into reviews for bad credit repair businesses. You don’t need a huge bill at the end of your credit repair service.
The truth is.. working on your credit takes time. Promises of fast or overnight results, may not be an accurate reflection of improving your credit rating. A steady repayment plan, cutting back on unnecessary expenses, and saving for a rainy day (no matter how small) can get you on the path to good credit.
