Staying on top of your finances is a hard job, especially when your income is minimal. To ensure you are balanced financially, you need to budget well, avoid getting into debt and maintain a good credit score.
Damaging your chances of getting loans is relatively easy, where credit ratings are concerned. Many of us do not know the damage we constantly inflict on our credit ratings. They should work towards avoiding such risks. The circumstances of a few individuals are unfortunately presently terrible. You Also, need to consider how long the exercise may take. This duration is dependent mostly on the extent of the damage.
A the logical starting point is opening a bank account. This forms the basis of the whole rebuilding exercise. There will be a shortage of funds to send to the account, but not having one will cause alarm during assessment by the relevant authorities. Having good ones with no liabilities on them is desirable.
The next activity is arranging to make payments for the existing debts. Normally, the declaration of bankruptcy results in the dropping of most of your debts. For those in milder circumstances, there is need to start the repayment initiatives. Should you be able to clear some of these debts in one round, you shall benefit from the provision of large discounts on the debts. When you have paid them in full or are regularly depositing instalments, you can then shift your focus to being proactive about fixing your credit score.
Work towards keeping the regular installments on time. This will minimize chances of you loosing your advantage in the struggle. The debt collectors have a duty to report on any default payments, as well as your pattern of making payments. You want your report to remain positive.
You shall now have to obtain a secured credit card. Since you credit is poor, your viable option is to get a secured credit card. You are furnished with one after depositing an amount to your account as security. Responsible use of the card, with regular and up to date repayments, will impact positively on your credit score. People fear credit at this juncture, but they are advised to have a little of it and be prompt with payments, which will better their score.
When you get here, arrange to have a small loan. To improve your score, you shall have to maintain your regular payments. Borrowing a manageable sum and clearing its payments is the wiser strategy.
You can also go further and request a friend to authorize you to be in charge of one of their lines of credit. If their credit patterns and score are impressive, having them reported under your name will greatly improve your standing.