Rapper Yung Berg made headlines last year, when after a night of drinking, his credit card was declined when he tried to pay the bill. One brush with bad credit turned him into the worst version of himself. His evil twin, if you will.
How your evil twin brings on bad credit
Thankfully, you’re not a spoiled celebrity. You don’t explode or act out when life doesn’t go your way. Most the time you’re a reasonable person who knows the rules and abides them. However, that doesn’t mean you don’t have problems… bad credit for one. Is your evil twin responsible? You know that ‘other’ version of yourself – the one who doesn’t pay bills on time? The one who doesn’t listen to the ‘good’ version of yourself, the one that knows what you should be doing.
Send your evil twin and bad credit into exile
Don’t hang with that evil twin a moment longer. Say goodbye and turn your bad credit history around. Don’t expect it to happen overnight though. Building good credit is a long-term process, one that may come with a slip or two. After all, you’re not perfect, your evil twin may make an appearance or two despite your best efforts. And with a little planning and a stick-to-it attitude, you’re sure to get a nod and a smile when applying for a personal loan in future.
Now, let’s look at a few steps you can take to repair a bad credit history.
1. Evaluate your bad credit: how bad is it?
First, you need a benchmark. You need to know how bad your bad credit is. Request a credit report from a reporting agency like Equifax or TransUnion. Opt for the free report by having it mailed instead of receiving it online. If your score is well below 600, you’ll see why in the details.
If your evil twin built a litany of late or unpaid bills, take heart. Use this history of late payments and personal loan applications as a learning opportunity. Look for patterns and bad habits you can correct. Errors can appear on your report, so check it carefully and have it corrected if necessary. Vow to never let bad credit happen again as you aim for a score of about 600 or higher.
2. Keep your credit card, but keep a low balance
Don’t cut up that credit card just yet! Use just one credit card responsibly, and it will actually help you build good credit. Of course you’ll have to adjust your evil twin’s habit of pulling it out and spending too much. Then, if you keep the balance at less than 30% of your limit, your bad credit will turn to good over time.
3. Pay your credit card balance on time
Nothing builds credit better than consistently paying credit card balances and personal loan payments on time. Create a plan that includes watching your statements like a hawk. Know your due dates and record them on a calendar. Set reminders in Outlook or iCalendar. Schedule or automate payments whenever possible and pay at least the minimum amount.
4. Pay off a debt completely
Is there some way you can eliminate a debt altogether? Do you have any savings that would serve you better now, rather than later? If you have a line of credit you can pay off completely, then do so and have the lender close it. It will eventually disappear from your credit report and your score will improve.
5. Could a short-term bad credit loan be the solution?
Don’t get discouraged. You may feel like you’re in a vicious cycle. For example, you need a car for work so you can make money. But you can’t get a personal loan for a car due to bad credit. How can you make payments if you can’t get to work? It may be frustrating, but the situation is not impossible. A short-term bad credit loan might help you keep your job, secure your steady income, and pay your monthly balances.
Have you banished your evil bad credit twin? Terrific! But it may take a while before you qualify for many types of credit again. While you’re building a good credit history, life goes on and you still have bills to pay.
Fortunately, Magical Credit specializes in bad credit loans. If you have a steady income and you’re determined to pay off debt, a bad credit loan may be a temporary solution to help you reach your goals. For more information, call Magical Credit at 1-877-213-2088 or fill out our online application today.