If your credit score has dropped over the past few years, you’re not alone. If you’re afraid to check your credit, you may not realize how bad things have gotten. To get on top of bad credit, facing the situation is the first critical step.
You Get Denied
If your credit card gets declined and you can’t get your lender to raise your limit, your credit score could be the problem. One of the factors that impact your score is credit utilization. If you only have two cards and both are maxed, you may be able to raise your score by spreading your debt across more cards.
You may try to get a consolidation loan and be denied. Consider moving your banking to a credit union that offers credit repair training and lending. A credit repair loan will allow you to get good “hits” on your credit score while building up savings and improving your habits.
Debt Collectors are Calling
If you get a call about a late payment or if late fees are piling up, it’s time to check your credit. The call may be a scam. It’s also possible that you made the payment, but the payment wasn’t correctly applied to your debt. So now is the time to order a free copy of your credit report and review it carefully to ensure that the debts attached to your name are your responsibility.
Make sure you review any loans that you cosigned for, as well as your debts. For example, one keying error can leave a loan lingering on your credit report that is paid off. You may have to go back to the person you cosigned for and find out if that debt is also still on their credit report so you can get it taken care of.
You’re Struggling to Get a Job
One of the biggest challenges of a poor credit score is that it can get in the way of making more money. Hiring managers will check your credit before offering you a job, especially if you will be handling money from other people. So before you apply, especially for a job in the financial industry, be honest with your potential employer about credit score problems and what you’re doing to fix the situation.
You Have More Month than Money
If you get paid on the 1st & 15th and out of money on the 10th & 25th, your payment burden needs to be adjusted. Refinancing debts to lower your payments may increase the total you pay overall for the item, such as a car. However, according to Lantern Credit by SoFi, “If you get a car loan while your credit score is low, you can still save money when you choose to refinance a car loan with bad credit by extending the terms of your loan.”
A low credit score will make your insurance more expensive. It will make it hard to get an apartment. If you notice any of the symptoms above, it’s time to order up your credit report and tackle delinquent debts and maxed-out accounts.