If your credit is far from perfect, then you’re certainly not alone. Despite people across the developed world becoming more and more conscious of their credit, a lot of people are still living with scores well under 600. Since you’re reading this, I probably don’t have to tell you how inconvenient and costly having bad credit is. While you may be barred completely from certain things, there are various things you can do to ease the burden of bad credit and get yourself back on track. Here’s a few of my best tips for living with bad credit…
One of the most irritating things about having bad credit is that it makes it much more costly to borrow. Modern lenders absolutely love subprime borrowers, they allow them to charge extortionately high rates. Of course, the best way to dodge these is to avoid borrowing in the first place. However, this isn’t always possible. Thankfully, there are various credit tools which can help to improve your score. If your bad luck or bad habits are behind you, then you can start building up your score by getting a credit card, using it, and then paying the bill on time and in full every month. If you can’t find a standard credit card that will accept you, then consider looking into secured credit cards. If you weren’t already aware, these are secured by a deposit equal to the card’s limit. If you’re needing to borrow for a specific purchase, there are also products specially engineered for renting, car loans and so on. You can learn more here if you think your credit score will hold you back from an auto loan. When choosing one of these alternatives, just make sure that they’ll report all your on-time payments to credit agencies. Not all of them do.
A lot of landlords will want to run a credit check before they approve any tenant, and if you’re subprime it can present a real challenge. Usually, you’ll simply have to pay a higher security deposit, or be asked to come up with a co-signer. These days, it’s very unlikely for a landlord to deny your application on the basis of credit alone, but it’s a possibility you should be aware of. When it comes to the previous two options, I strongly recommend planning to come up with a higher security deposit, rather than looking for a co-signer. This goes for anything else that could require one. Why risk a close personal relationship over money when there are landlords out there who are willing to rent to you without one? Aside from that, you can protect your credit by ensuring you’ll get a refund. Read through the lease, and make sure that the full amount you’re putting down is listed as refundable. If it isn’t, don’t sign anything. Another good way to cover your back is to ask the landlord to break your deposit up into separate payments. We’re all human, and most landlords will sympathize with your financial struggles.
Getting a Wi-Fi Service
Many people aren’t aware of it, but wireless internet providers are in the credit game as well. You won’t be able to get a contract without a credit check, and if your score isn’t looking too healthy, you may be asked to pay a deposit. These can vary greatly, starting at around $100 and reaching $500 for people with particularly low scores. Obviously, you may not be too crazy about the idea of being penalized by a high deposit. Thankfully, there are many prepaid plans which could be a better option for you. You’ll have to pay full price for the device, but the monthly service is very reasonable.
Getting a Job
Job hunting has enough stress factors without the knowledge that your bad credit could come into play. A lot of employers require a credit check, though the number is steadily going down. Even at businesses where a credit check is part of the process, there are many recruitment managers who will hire candidates despite seeing negatives on their credit history. If you know you’re going to undergo a pre-employment credit check, then don’t panic. You’re not the only person in the world with bad credit. Don’t try to step around it. This will only come off as unprofessional, and make employers think that you have something to hide. Above all else, put your cards on the table. If it comes to it, admit your past mistakes, and explain how you’re working on it.
This post was contributed. Family friendly post are welcome.