The Best Remedies for Bad Credit

If you have bad credit, you’re not alone. Most Americans have made some poor financial decisions in their life, but unfortunately, those bad choices can leave us with a lifetime of less-than-stellar credit. If you’ve been ignoring your credit score, know that ignorance is not bliss; bad credit can prevent you from being able to open a credit card, rent an apartment and even buy a car. Luckily, there are some moves that you can make to improve your credit quickly. Take these top tips and get started improving your credit today.

  • Pay down your debt. Obviously, the fastest solution to credit troubles focuses on paying off outstanding debts is the first step towards a healthier financial life. According to a report by FICO, credit card companies base an average of 30% of your credit score on how much you owe. This means that living lean for a few months can have a major effect on your credit score. Holding a garage sale or picking up a temporary second-job can help improve your financial health.
  • Look for financing options. Some expenses are immediate necessities. For instance, if you don’t have a car, you might not be able to get to work to earn money needed for bills! Luckily, financing options can help ease these burdens. For example, if you have bad credit and are looking for a car loan in Philadelphia PA, we here at PA Auto Credit offer financing options that can make payments manageable. There are options for people with bad credit to get an auto loan in Philadelphia PA, and they can help you clean up your credit, especially if you are able to make more than monthly minimum payments.
  • Increase your credit. This sounds counterintuitive, but it’s one of the best strategies you can take towards better credit if you cannot pay down your debts. A credit score is based on the percentage credit you are using on a monthly basis. For example, if you have a $1,000 credit limit and you owe $1,000, you have maxed out your credit, which will result in a lower score. However, if you owe $1,000, and your limit is $2,000, you are now only using 50% of your credit, which is a positive sign in the eyes of loaners.

If you wish to learn more about your credit and what financing options we offer, we encourage you to contact us today!