Dealing with subprime and high risk auto lenders can be a scary option. If you miss a payment on a subprime auto loan, you can find yourself losing your car to repossession. Nonetheless, subprime and high risk car loan lenders can be a way out of bankruptcy for people who are suffering through financial difficulty. The most important thing to understand about recovering from bankruptcy is that the goal is to establish a reliable payment history with a new creditor. A great way to do this is to take out new loans and pay them back promptly. Unfortunately, it can be difficult to take out loans when you already have bad credit. A great way to boost your credit rating is to take out a car loan.
It is only after ten years pass and the Primary Tradelines does not make a mention of the bankruptcy will your financial life come back to normal. 10 years-a very long time. A 35-year old middle aged man will be an old man entering the last stage of his or her life. Do you want to waste 10-years of your life just because you felt there was no other alternative?
If you ask me a more startling statistic is 90% of the information on the internet teaching you how to improve your credit is bad or erroneous. Let me explain.
The problem is that debt consolidation is like a bad word on your primary backdated tradelines with history. If you have two people with equal debts, and one uses a consolidation loan while the other handles their own debt repayment, the one who took care of their own debts will come out better in the end. Even if it takes longer to get debts rectified, you’ll still be more desirable to credit companies because you don’t have a consolidation loan on your credit. What if they don’t find out?
The one drawback of secured credit card is that it requires you to make a security deposit against the credit limit. The good news is that your credit history won’t count against you. After you’ve built a sizeable emergency fund from saving your money each month, use some of that savings to fund your security deposit. Make sure you choose a secured card that reports to at least one of the three credit bureaus each month, even better if it’s all three.
Remember, the first thing to do is to check your credit report for credit limits. If your high limit is not reporting, the scoring model will use your balance as your credit limit. This means you’re using 100% of your availability. Call your creditor and make sure they correct it. Distribution of debt is an easy way to make sure you maintain a strong score. Try to have a good spread of debt with lower balance to limit ratio. For example, its better to have $2,000 on five cards than it is to have $10,000 on one card with four others paid off.
Nobody is perfect and most of us have made the same spending mistakes that you have and negatively effected our credit ratings. Facing up to the problem is the first step and it is a big step in the right direction. Take what you have learned today from this article, apply it to your every day actions and incorporate it into your strategy for repairing your credit now!