Finances & Money

What to Do If You Have a Bad Credit Score

Every year has its ups and downs. 2018 may not have been the best year for you. It may have left you in a worse financial position. Worse still, you may have done one or two things that may have impacted negatively on your credit score. But glory is to God because the year has come to an end and everyone is looking forward to a successful 2019. drcredit.com is committed to walking with you throughout the new year. Don’t be bothered by the setbacks you encountered in 2018. As you work to fix your credit score, they will be there to partner with you on all your financial needs.

The meaning of a bad credit

Whenever you fall in arrears with your short term or long term loans, the activity of your account will be reported to credit bureaus. It means that it may be difficult for you to secure further credit unless you pay the existing loans and get cleared by the credit bureaus. The best way to go about it is to work hard to keep your credit low. Also, you must strive to pay credit when your payment falls due. If you do not pay your debts on time, your credit score is likely to drop. It will make it difficult for you to secure credit.

Note that all the activities on your account go into your credit report. It may be used to compute your credit score. This helps financiers to determine your creditworthiness. Financiers use this information to determine whether to extend credit to you or not. A credit score of between 500 and 850 is good because it tells the creditors that you are likely to pay the debts when they fall due. But a score of less than 500 tells the financiers that you are likely to default paying the loan so it reduces your chances of securing a credit facility.

Why you need a good credit score

Ensure that you always have a good credit score. It will help you access finance and sort out any emerging financial problem. Issues such as a broken-down furnace, car repair are emergencies that require cash to be fixed. It would be bad for your family if your furnace breaks down when you don’t have money. Also, it will be embarrassing if your car broke down when the payday is 15 days away. You need to get to your place of work and do all the assigned duties without fail.  This is where short-term financing comes in handy.

Find a reliable partner who can extend to you a short-term loan when an emergency comes calling. In most of the cases, you will have the funds ready in the next business day. This is critical since it will help you have the emergency fixed and allow you to go about your activities uninterrupted. Get a loan at competitive rates and lead a stress-free life. So, whether you’ve got bad or good credit, find a financial partner that can listen to you.

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Susan Paige

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