Recovering from bad credit can be a long process. At times it may even seem like you’ll never break out of the rut … but there are ways of securing your place in the black and out of the red. Here’s how.
Get reviews from credit bureaus
When you receive the review make sure the details are accurate and there are no unexplained numbers within it. From that moment you can make an assessment and decide the best course of action. For instance, cutting back on non-essential items could help keep your outgoings in check and provide you with extra money you wouldn’t otherwise have. This extra money can then be used to make repayments more manageable.
Make regular payments to your creditor
Most credit agreements will typically involve a regular repayment schedule and it is important you stick to this and make regular payments to your creditor. Even if you’re struggling to get the full amount together, call your creditor and discuss your options with them. Providing you keep them informed most will be willing to adjust the repayment amount or date to accommodate your needs and prevent you from facing costly late fees.
By making regular payments, no matter how small, you can actually get your credit score back on track as you are proving that you can borrow money and stick to a repayment schedule.
Reduce the debts you owe
Most bad credit will start from a debt that you cannot pay off and that results in unpaid bill so be sure to keep your bills on track and pay off anything that remains unpaid as soon as possible. After all, the last thing anyone with bad credit wants is to owe money to the banks for going overdrawn!
Paying off debts in this way is a great way to save your credit rating but you should also remember to look after family and friends too. They’re loans may not be counted in your credit rating but it’s important to risk these important relationships for the sake of a few pennies.
Do not borrow unless it’s absolutely necessary
Whether it’s from a family member, the bank or a short term lender, only ever borrow money if it is absolutely necessary and you are absolutely sure you can pay it back at the end of the term. If you do decide to borrow money then make sure you opt for a reputable lender too.
Short term lenders such as Satsuma Loans offer you the chance to repay loaned cash in weekly segments that are customised to your situation and this makes it easy to keep track of how much you’ve paid back and how much you still have outstanding.