Nobody enjoys the stress and inconvenience of bad-credit. It increases the cost and complexity of doing just about everything. But what can you do if you’ve been out of work for a while and can’t afford to pay your bills?
Bad credit can be completely unavoidable at times. However, keep in mind that you can get by with bad credit for the time being while you work to improve it. The reasons for bad credit might include:
- Poor money management and a failure to set realistic budgets
- Errors in evaluating financial opportunities
- A deficiency in financial education and counseling
- Circumstances beyond one’s control, such as the loss of one’s job or severe illness
- In this article, you’ll learn how to survive or better still scale through day-to-day living even with bad credit as we will look at several things you might need and how to apply them even with a bad credit score.
What is a Bad credit score?
Understand that there is no universal credit scoring model and that different models may yield different credit score ranges. However, FICO and VantageScore, the two most popular scoring systems, use a scale from 300 to 850.
Next, it’s essential to understand that credit scores are contextual. Various financial institutions use varying criteria when deciding whether to grant you credit. You could get approved for a car loan with a credit score of 600 from one financial institution but be turned down by another.
As the median FICO score for American consumers continues to rise, those at the bottom of the spectrum may have more difficulty gaining access to credit.
It’s worth noting that FICO itself uses score ranges to present information. A score between 300 and 569 is considered “poor,” while 570 to 669 is considered “fair.” The credit score range we’re discussing here is where you should focus your efforts if you want to be in a position to borrow money in the future. Improving your credit is a good idea regardless of whether or not you plan to borrow money shortly.
Tips to consider to survive with a bad credit
Credit cards have become increasingly important in today’s society.
You can’t rent a car, stay at a hotel, shop online, or do many other things that require money if you don’t have a credit card. However, obtaining a credit card can be extremely difficult if you have poor credit.
One alternative is prepaid cards, where money is loaded onto the card before it is used to make purchases. It’s just like using cash, but you get the added convenience of using that plastic that so many places now require.
If You’re Applying For Jobs And Have Poor Credit, Employers May Use That Against You.
Indeed, a growing number of employers now check the credit records of prospective employees.
There are actions you can take if you find yourself in this predicament. To begin, bring your credit report to the interview and be prepared to discuss it if you are told a credit check is a required part of the application process.
If a job applicant with poor credit explains their low score and what they are doing to fix it, the employer may be more willing to give them a second chance.
If You Have Poor Credit, Finding A Suitable Rental Will Be Extremely Difficult.
It would help if you considered the following suggestions to increase your likelihood of success.
Inquire upfront about any requirements a potential tenant must meet.
That’s not the same as asking if a credit check will be performed, which would raise red flags immediately. If a landlord doesn’t say they’ll check your credit, it’s probably because they aren’t planning to.
As a second step, make sure your citations are in order. Credible references can be just as crucial as a stellar credit record in certain situations. Lastly, if you know a credit check is imminent, follow my advice to job seekers.
Include a copy of your credit report and an in-depth description of the issue when you visit the creditor. This will demonstrate to the landlord that you are making an effort to better your living conditions.
Having Bad Credit Can Make It Challenging To Buy A Car.
The first step in solving this problem is figuring out how much money you have available. Don’t hesitate to buy a car from a private seller if you have the cash on hand to do so.
A credit union or other lender may be willing to work with you if you can put down a sizable down payment on a car that you need but cannot afford. Lenders like to see that borrowers are serious about making the same financial commitment they request.
One’s moral character is not indicative of one’s credit history. This is the narrative you should tell those skeptical of your credit history. The recent economic hardships experienced by many have made poor credit scores much more understandable.
Openness and evidence of effort put into repairing your credit will win over those who are wary of you. Moreover, bad credit is only a temporary problem.
Locating a suitable wireless network
You also have competition from cellular carriers for your high credit score. Before agreeing to a cellular plan, your credit will be checked; a deposit may be requested if it’s poor. Deposits are all over the place, as evidenced by a quick survey of some close friends’ credit scores. One friend put down $100, another put down $250, and another with a lower credit score put down $500.
Nonetheless, you can choose from several different outcomes. Instead of being punished with a large initial payment, prepaid plans allow you to pay as you go. Although you’ll have to pay the total price for the phone, their monthly service plans are now more affordable.
Having a bad credit score is not a disease and not a big problem that cannot be curtailed but you have to work hard and make plans toward clearing your bad credit records. But in the meantime, the above tips can be a possible solution to surviving with bad credit.