While receiving a bad credit score does not reflect on every aspect of your integrity, it does say something about your financial stability and trustworthiness. After all, any lender will think twice before lending to a person with bad credit. However, if you are dead serious in improving your credit scores and getting a car, then you should consider pursuing a bad credit loan.
Unorthodox Ways to Improve Your Credit Rating
Though it might sound like an oxymoron, the fastest and easiest way to improve your credit rating is to actually apply for several loans. There are lenders who are willing and amenable enough to grant you a loan despite your bad credit ratings. A perfect example: Bad credit used car dealers who offer people with several flexible loan payment options when choosing to buy a pre-owned vehicle.
As you might know, not all reputable and trustworthy people possess good credit standing. Some managed to glean bad credit scores simply because they never took out a loan in their life. You need to understand that a big factor in computing your credit score is your loan payment history. If you have never taken out a loan before, you technically don’t have a credit history. Hence, no formal evidence exists that suggests you are trustworthy enough to keep up with your payments.
Rapid rescoring presents another uncommon way to rebuild credit. Rapid rescoring involves a credit repair strategy that requires two steps: 1) correcting or updating your information on your current credit report and 2) submitting the corrected form to the credit bureaus. However, for rapid rescoring to work, you must pay a fee to the credit bureaus. It is a highly complex process with no guarantee that it will work to improve your credit rating.
Lastly, you can try opening lots of new accounts to get the appearance of high credit and low credit utilization. Experts say that if your credit card utilization is less than 20 percent of total expenses, then you are likely to end up with better credit scores.
What you need to understand is that these strategies can be a double-edged sword, particularly if you don’t possess the means to pay the basic necessities, such as utilities or your home’s rent. To find the best strategy toward an improved credit rating, consult an auto refinance company or a used car dealership to learn more about the many payment options available to you.
10 Ways You Can Improve Your Credit Score Right Now, LifeHacker.com
7 ways to improve your credit score, BankRate.com