It doesn’t matter how your credit score managed to get into a bad shape the fact is you have got to do something to fix it. In today’s world having a bad credit score has the ability to deny you more than just credit. It can prevent you from renting an apartment, even from getting a job. A lot of employers now will not hire someone who has bad credit. Their thinking is that if you cannot be responsible at home with your finances then you are not going to be responsible at your work either. Is this an overreaction? It is, but it is reality as well. But what are you able to do to improve your credit rating? First of all you need to realise that this wont be a quick process. Dependant on how bad your score is, it may take more than six months. If your score is less than 500 it could take more than a year.
Three main factors will largely determine your credit score.
- Payment/Non payment
- The number of credit sources
- The number of creditors
You can see two things from these points. First of all, every single one of your payments needs to be on time or early. Next the credit sources you have need to outnumber the creditors. This basically means that you have to get money from more place than you owe to. A couple of ways that you will be able to build your credit faster than usual is to use payday loans or logbook loans. Payday loans are especially are great because they are small and fast. You are not only going to pay the loan back in a single payment, on payday and getting points for it, each payday you get points for paying off a full loan. A logbook loan is going to be quite a bit bigger, but it will let you consolidate all your loans into one payment.