No one wants to be in debt for the obvious reasons, but again, having some debts may mean a plus for you. For instance, purchasing a new car or home might push you into borrowing some money, and to pull this up, you’ll require an excellent credit rating.
But this won’t be easy if you’ve previously handled things like small loans, credit cards and store cards and ruined your FICO score. So if you intend to set your finances straight and hit the thoroughfare to a better financial future then here are simple tips to get you going.
Drop your cards
You only realize things are about to go wrong when you begin getting late with almost every payment. And your first course of action should be to drop your cards to avoid the temptation of spending on them. This way you reduce your balance every time you make payments and not merely spend back on it.
For much worse cases, it’s better to consult a debt management company. They usually speak to creditors and ensure all interests are frozen and debtors enjoy reduced payments. The goal is to clear all balances and shut down credit accounts to the time when you’ll have streamlined your finances.
Rebuild your FICO score
Bad credit is fixable and there’s even the possibility of getting a merchant account with bad credit. You only need to be in charge of your finances this time, and in 6 years you’ll have cleared the poor credit rating off your records. Begin by drafting a personal budget to control your spending. That way you can avoid getting into financial problems and gradually re-establish your credit.
Limit your borrowing
To tame your borrowing, you need to start by making cutbacks on money-wasters and concentrate on putting your finances to good use. Why buy coffee at a shop when you can carry a flask to work?
Regaining control of your funds allows you to apply for special credit meant for people with poor scores like collateral loans. This time you want to be careful and make sure your monthly payments are timely.
Poor credit ratings can threaten to shutter many of your dreams, but only if you allow it. The above tips can help you pick your pieces and move on.
Electronic Payment expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music and travel. eMerchantBroker is America’s No.1Company for getting a merchant account with bad credit serving both traditional and high-risk merchants.