Bad Credit: What That Means for You & How to Get the Money You Need

Businesses use your credit score to determine whether or not they want to loan you money and what rates you’ll pay on the money you’re loaned. While each company has its own set of standards that define “good” and “bad” credit, a general rule of thumb is that a score over 800 is excellent credit and a score below 600 is bad credit. Those who have good or excellent credit scores will have no problem borrowing money when they need it. People with poor credit have a much harder time. They can’t get a car loan or mortgage. In some cases, bad credit can even affect their ability to get a job or a place to live. If you have bad credit, it’s important to work toward building up your credit. The following solutions may help you borrow the money you need and rebuild your credit.

Buy Here, Pay Here

If you need money for a specific item, you might be able to find a store that has a “buy here, pay here” policy. These types of businesses are accustomed to working with people who don’t have good credit scores. In this way, you can finance that new car you need or even replace a major appliance. These types of arrangements generally have higher interest rates or starting prices than other stores, but you may be out of options. Ask them if they’ll report your payments to credit bureaus to improve your score.

Secured Credit Cards

If you have a small amount of money to act as a deposit – or could borrow it from a family member – you could apply for a secured credit card. The deposit acts as your credit limit, and it’s a good way to build up your credit score. At the end of the stated term, you’ll get the deposit back. However, you do need to watch out for high annual fees and other charges.

Payday Loans

Getting a cash advance from services like Payday Express can work well for those who have a short-term cash flow. You write the company a check that includes their fee and they’ll cash your check on payday while giving you the cash you need now. The fees on this are often exceptionally high, so you need to avoid getting into the trap of needing to use these all the time. It works best for the times when you have a sudden unexpected expense. It’s hard to live with bad credit, but you do have options. Research them fully to find what’s best for you.