The Essential Checklist For Improving Bad Credit
Your credit score plays a big role in many aspects of your life, so having a checklist for improving bad credit is a good start on a solid financial road. Many people may feel stuck with bad credit because of inflation or ongoing situations like medical bills or home repairs, but having bad credit doesn't have to be permanent. In fact, here are seven essential things you should have on your credit checklist if you want to see improvements.
Trying To Improve Your Credit? Use This Checklist To Help!
1. Get A Current Credit Report With Your FICO Score
Getting a current credit report may seem scary to some, but you must know where you stand before you can make a checklist for improving bad credit. Having a list of your debts gives you a place to start to repair your credit. You are entitled to one free credit report a year from all three major credit bureaus, which are Equifax, TransUnion, and Experian. It is important that you compare all three to get a full picture of your credit history.
2. Check Credit-Boosting Programs
Some credit bureaus have programs where people can get a boost in their credit scores. You can opt in for programs like Experian Boost and include a variety of payment histories onto your Experian score. You can add things like your utility bills or even your subscription bills to Netflix or Hulu. As you make these payments on time, they get added to your Experian credit report. Programs like Experian Boost should be near the top of your checklist for improving bad credit.
3. Prioritize Your Debt
When it comes to improving your credit, a great place to start is with your debt. Strategies exist for paying off debt that work reasonably well. You can either choose the snowball method that prioritizes your debt with the smallest interest first or the avalanche method that prioritizes your debt with the highest interest first. You’ll also want to research whether paying old debt could hurt your credit score if you make continuous payments rather than just paying them off at once.
4. Consider A Consolidated Loan
Consolidated loans can work in some cases when it comes to trying to improve your credit. Basically, you’d take out a loan and use it to pay off your consolidated debt at once, and then you’d slowly work to pay off the loan. This can simplify things for your budget if you can make monthly payments to your loan. Be aware that you will end up paying more if you fail to make monthly payments. The good news is your monthly payments are reported as new on-time payments to all three credit bureaus.
5. Get A Secured Credit Card
Once you've paid your debt down some, a secured credit card should be on your checklist for improving bad credit. Your local bank may have one and some are offered by major companies. With this secured credit card, you put down some money – like $200 – and get a credit card that reports to the financial reporting system. You use it, pay it monthly, and build your credit. You can get a credit limit increase without additional deposits after a few months of on-time payments.
6. Don't Forget To Save
Many people get so hung up on paying off debt that they fail to save money. While it sounds like a good idea to just focus on your debt, you still need to prioritize saving money. Remember, most people get into debt because they need money for emergencies. The good thing is you don’t have to save a ton of money. Just putting about 10 percent of your paycheck away will build more security for yourself and your family.
7. Find Ways To Pay For Emergencies
You need a plan to pay for emergencies while you are working to improve your credit. One way to do that is with a bad credit payday loan. We here at Cash Cow in Louisiana offer a bad credit payday loan that allows you to get anything between $100 and $300. This loan was designed to help you bridge the gap between pay periods when an emergency suddenly hits you that you need to handle quickly.
Paying for an emergency can be stressful, but we make it simple in an in-person process that takes around 30 minutes to complete. And if you are approved, you can have the money either the same day or on the following business day. Plus, payday loans are not reported to the credit bureau, so they won't affect your credit score. If this sounds like something that could help, go to our website to fill out the online form and get in contact with the nearest store location.
Start Improving Your Credit Today!
When it comes to making a checklist for improving bad credit, these seven things need to be on that list! Any one of these tips can be just the thing you need to improve your credit. So don’t hesitate any longer and starting creating your credit checklist. And remember, if an emergency hits that leaves you needing help, a bad credit payday loan from Cash Cow is an option you can consider. Fill out the online form now to get started on the process.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.