Your Credit Score After a Big
Big and bad problems can happen to you -
bankruptcies, divorces, law suits, non-payment of taxes.
These are big problems that can affect your credit score in a
big way. If you have faced a large problem that has
ruined your credit, you need to take action fast and work
consistently to boost your FICO score:
Tip #25: If you have bad
credit, establish better credit by taking out credit and
repaying it quickly.
If you have terrible credit following a
bankruptcy or other major financial upheaval, you may need to
get back into a good credit rating by taking out a loan you can
handle. Make an appointment to see your bank or bad
credit lender a few months or years after the problem in
question and arrange for a small loan.
You should have enough savings
to pay for the loan before you do this. Pay back the
loan quickly. It will not hugely boost your credit
score but it will show lenders that you are having an easier
time paying your bills. Taking out a small loan you
can repay is part of the slow process of reestablishing good
credit following a big financial problem.
Tip #26: Try
secured credit if you cannot qualify for other types of
Secured credit is credit or a
loan which uses something as collateral. In some
cases, this could be an asset like a house. In some
cases, this collateral could be money frozen in an account
by the bank for just such a purchase.
If you need credit following a
big problem with your credit score, secured credit may be
something you can qualify for. You can use this secured
credit to reestablish a good credit rating so that you will
qualify for other loans in the future. You may have to
pay slightly higher interest if your credit score is quite
low, but in the long term repaying this type of loan can
improve your credit score.