7 Amazing Tips for Living with Bad Credit ...

It might be easier for people with good credit, but living with bad credit isn’t the end of the world. You can research ways to improve your credit score. But even if you change your credit habits, it can take one or more years to boost your score. For that matter, you'll need to learn ways to cope with bad credit. Here are seven amazing tips for living with bad credit.

1. Look for Ways to Earn Money

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If you're living with bad credit, look for ways to increase your income. Sometimes, bad credit occurs when people don't have enough income to pay all their bills. If you're having a tough time making ends meet, look into part-time work. Ask your employer about overtime or turn a hobby into a side business. This income can help keep bills current and pay off debt.

2. Save Your Money

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If you have bad credit, it may be difficult to get financing. And if you're approved for loans, lenders may require a down payment. Therefore, while you're improving your credit score, you should also be saving your money. Set aside a percentage of each paycheck, and look for ways to reduce expenses.

3. Beware of Subprime Lending

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Some creditors and lenders specialize in bad credit financing. This is an excellent way to get a loan or credit card when you have bad credit. However, you should proceed with caution. Research lenders before agreeing to their terms, and always compare rates before accepting financing.

4. Only Borrow What You Need

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Bad credit has costly consequences. If you’re approved for financing, you'll probably pay a much higher interest rate than someone with good credit. This results in a higher monthly payment. To keep loans affordable, only borrow what you need, and pay off loans as soon as possible.

5. Use a Cosigner

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Sometimes, qualifying for loans and credit cards with bad credit requires a cosigner. However, finding a cosigner can be difficult, especially since many people don't want to risk their good credit history. Most people will refuse to cosign your loan, but you might be able to convince a parent, a sibling or your spouse. They’ll need to be confident in your ability to repay the lender on time.

6. Negotiate with a Landlord

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Buying a home isn't always an option when you have bad credit, thus you're forced to rent a home or apartment. If you have bad credit, some private landlords may reject your application. To get approved, offer to pay a higher security deposit and provide the landlord with other information, such as a positive rental history. Be professional and provide a detailed explanation about your situation. If bad credit resulted from a job loss, an illness or a divorce, the landlord may be understanding.

7. Get a Plan to Repair Credit

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You can't fix your credit overnight, but you can develop a plan to raise your credit score. Start by paying bills on time. Next, create a plan to pay off debt. Also, you’ll want to reestablish your credit history after a bankruptcy. You can accomplish this by getting a secured loan or a secured credit card through your bank.

Living with bad credit has its challenges, but there are ways to get the financing you need. And once your credit score improves, you’ll qualify for better loans and rates. What are other tips for living with bad credit?

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