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7 Essential Financial Tips To Remember When You Have Bad Credit

Bad credit can hold you back from getting the things you want; renting out a lovely apartment, buying a car, or qualifying for a loan. But the good news is that a damaged credit score is something that you can restore.

In fact, fixing your credit can be a lot easier than you might think. Just be patient and follow these financial tips.

7 Essential Financial Tips To Remember When You Have Bad Credit

7 Essential Financial Tips To Remember When You Have Bad Credit

1. Monitor Your Credit Score

Knowing your most recent credit score will help you make better financial decisions. You can generally expect your credit score to be updated at least once a month, but it could happen more often than that. That’s why it’s essential to keep an eye on it. There are plenty of websites that offer free a credit score check. Just be sure to read through the terms before you sign up.

2. Dispute Any Errors

You might be surprised to find out that credit bureaus can make mistakes in your credit report. In fact, it may happen quite often. Around a quarter of individuals have confessed that they have had errors on their credit reports at one point or another.

To make sure that this mistake does not ruin your credit score, carefully review your reports and always dispute the errors.

3. Try to Keep the Credit Utilization Ratio Below 30%

The credit utilization ratio is a percentage representing the amount of credit you are using divided by the total credit available to you. The ratio of less than 30% is typically considered to be good.

To keep this percentage low, you can pay your balance early and ask for a higher credit limit, while not increasing your spending.  

4. Pay The Bills On Time

Payment history makes up 35% of your credit score. This means that a late payment can easily make your credit score drop. To avoid that, set your account to automatic payments. If you can’t do that and you are not able to fully cover the bill at the moment, try working out a payment plan with the service provider.

5. Keep Your Old Credit Cards Open

Once you have paid your old credit cards off, don’t immediately close them. The longer they remain open, the more extended credit history you will be able to establish. This makes up 15% of your score. However, before following this tip, consider the annual fees. In some cases, closing the card would be more financially justified.

6. Consider A Secured Credit Card

Secured credit cards can help establish or build credit. Such cards require a cash deposit when you open the account. Every time you make a purchase, the money acts as collateral.

These cards are a great way to show financial institutions that you can use credit responsibly, as long as you make the payments on time.

7. Pay Off Outstanding Debts

Paying off outstanding debts can help reduce the credit utilization ratio and improve your payment history. You can choose to repay the smallest balances first or focus on the high-interest cards. Simply spend a few minutes to make the necessary calculations and see what option will work best in your specific case.

What Loans Can You Qualify For With Bad Credit?

A lot of lenders would prefer not to deal with borrowers who have poor credit. But that does not mean you won’t be able to get some quick cash in case of an emergency. We here at Carolina Payday Loans, Inc. are a reputable financial service provider that offers competitive payday loans.

Your credit history and any credit issues do not matter – we are ready to consider any credit situation and are committed to helping you get the money that you need.

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How To Apply For Payday Loans For Bad Credit

We here at Carolina Payday Loans, Inc. have made the process of applying for payday loans with bad credit as simple as it can be. In fact, you might be able to finish up the whole process in only 30 minutes and receive up to $550 in a short timeframe.

Simply submit an online form and wait for one of our loan representatives to call you. Arrive at the nearest store with your photo ID, most recent pay stub, and a blank check from an active bank account in your name. If you get approved, you will receive the loan amount that same day or the next business day.

Apply For A Loan With Bad Credit Today!

Though there are ways to boost your score, it might take some time. And if you’re having to deal with an emergency situation, bad credit should not prevent you from getting the money that you need. 

Our representatives at Carolina Payday Loans, Inc. know that you’re already struggling financially. That’s why we are ready to consider all credit situations and fund the loan amount requested, if approved, in the shortest time possible. If you can’t wait any longer, fill out the inquiry form right now.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.