If you have failed to pay your bills on time, got your credit cards maxed out or had any other payment difficulties, you may now have a poor credit score. This means that you will struggle to get any type of credit until that score has improved. Luckily, there are a few things you can do in order to improve that again.
Understanding a Low FICO Score
There are many reasons why you could have a low credit score. While financial institutions would like to make you feel as if you are a bad person, the reality is that it happens to most people because there was no other way for them to make ends meet. Unfortunately, lenders no longer see customers as people, but rather as numbers. If your number is not high enough, it seems that there is very little you can do.
Car Title Loans
One option you do have available to you is to apply for title loans in California. This is a secured and short term loan option that is paid out to you very quickly, generally within as little as 24 hours. This means you have the opportunity to meet an unexpected financial obligation and thereby not damaging your credit report any further, as well as being able to rebuild your credit rating somewhat.
How to Rebuild Your Credit Score
There are a number of things you can do to rebuild your credit score. These include:
- View your credit reports with TransUnion, Equifax and Experian. Check whether the entries on there are entries you recognize. If you believe them to be in error, you need to contact both the credit bureau and the creditor and try to have it rectified.
- Pay your credit card debts off. If you have a maxed out credit card, you should try to do a balance transfer or take other actions to lower the amount you owe.
- Do not apply for more loans. The reason for this is that a lender will run a credit check on your file, and this will be left as a trace for as much as three months. Hence, avoid applying for any type of loan that takes your credit score into consideration.
- Stick to your repayments. If you have any outstanding loans, credit cards or other financial products, make sure you make all payments on time. Additionally, this is where you could consider applying for a title loan and using that to show positive financial behavior.
If you decide to take out a car title loan, make sure that you have a plan in place to repay it and stick to it. This will boost your low credit score. After some time of doing this, you may be able to qualify for better financial products once again. Having a low credit score does not mean there are no options out there for you if you are facing a financial emergency. Since your vehicle will be put up as collateral, they are more forgiving of past behavior.