The following post is by Amanda Green. Enjoy!
It is easy to end up with poor credit. Far easier than people realize. The good news is, even if you are lazy you can still build up and repair your credit.
Don’t know where to start? That’s okay. I’m here to give you a few good tips on reviving your poor credit score and scoring those awesome credit cards no matter how lazy you are.
1) Address Outstanding Debt
I think we all know I’m not talking about wonderful debt, because there is no such thing. Hey, we’re all a little lazy when it comes to this, especially if we have a lot of outstanding debt. The truth is, if you have a lot of outstanding debt (particularly from medical bills or credit cards) you have to address those debts to have any hope of improving your credit score.
If you don’t feel like dealing with this yourself (and it can be overwhelming), don’t worry. You can hire out a company who specializes in reducing debt and credit repair services. It takes the trouble and puts it in someone else’s hands. It’s the perfect solution if you know you can’t (or won’t) deal with it on your own.
2) Get Secured Credit Cards
Whoever came up with this idea was brilliant. A secured credit card is a card for people who have poor credit and are looking to build their score back up again. The idea is pretty simple.
- You apply for the secured card and establish a credit limit.
- You put down the deposit based on the credit limit (usually 50-100% of the limit).
- You use the card with the deposited balance.
- You reload the card just like any other pre-paid card.
The bank that holds the account reports to balance to the credit bureaus to establish a stable credit card that is controlled. There can be a fee associated with these cards, so find out for sure and read the fine print.
3) Join a Credit Union
Credit unions are like banks, but they are owned by the customers. That means that the credit unions aren’t out for profits like regular banks. As a result, they are able to offer higher return on interest, and lower interest rates on their credit cards and loans. The beauty is that credit unions still report to the credit bureaus, so you can build your credit and increase your chances at getting better rates at the same time.
Once you have established yourself with the credit union, find out if you can qualify for a low interest personal loan or a home refinance. By using a personal loan through the credit union to pay off credit card debt, you are ensuring that you will have it all paid off by a certain date.
4) Budget
Sounds like a no-brainer. The truth is a lack of budget is one of the main reasons people find themselves in this mess to begin with. If you ever want to climb out of debt you have to create a budget and stick with it. Make it reasonable and effortless, and you are more likely to succeed at sticking to it.
Try to avoid using credit cards as much as possible. They will only throw you further into debt.
