Have you ever found yourself in a situation where you need money, but your credit score is bad? Maybe you're looking for a new apartment or car, or maybe you've just maxed out your credit card and need to pay it back. Whatever the reason, it can be tough to get a loan—and even tougher if you have a bad credit score.
But don't worry! It may not be as hard as you think. Here are some tips to help improve your credit score:
1. Pay off debt. This is the most obvious one on this list, but it has to be said that the best way to improve your credit score is by paying off any outstanding debt. You'll see an immediate jump in your score when that bill goes away!
2. Check your report regularly. Make sure there aren't any errors on your report that could be affecting your score (like late payments or other inaccuracies). If something needs correcting, do so right away!
You can do this for free with Credit Karma, or by filling out an annual form at AnnualCreditReport.com . Check for errors or inconsistencies, and look up information about where the data came from—you can ask the company that provided it to remove or correct the information if necessary (though there are limits on how long they'll hold onto it).
3. Don't open new accounts too frequently—or at least make sure they're paid off quickly enough so as not to affect your overall balance-to-limit ratio (which lenders look at when determining whether someone qualifies for loans).
4. Consider getting a secured credit card. These cards require an upfront deposit in order to secure a line of credit, so they're often used by people with poor credit scores who want to build their score back up again. They also tend to come with high-interest rates, but they often won't lower your score further than other types of loans might.
5. Talk with a financial advisor about your options for borrowing money without damaging your credit score further. There are several different options that may be available depending on your situation (like debt consolidation loans), so don't rule anything out until you've explored all your options!
If you have a friend or family member who can co-sign for you, that's one way to get a loan. You can also try getting a payday loan from an online lender—these are short-term loans with high-interest rates and fees, so they're not ideal if you need the money for something long-term like car repairs or medical bills, but for short-term needs like paying rent or buying groceries, it might be worth considering.
