The Essential Checklist For Improving Bad Credit

Building your future is a complex and costly endeavor. Your credit score serves as the lynchpin. But how do you obtain the capital that you need to thrive and progress if you have a bad credit score?

No matter how dire your financial situation may seem, there are numerous ways for you to improve your personal credit and get your future moving in the direction you want. To help you on your way, we present a time-tested checklist for improving bad credit, and how a payday loan can help you get on track.

A Comprehensive Checklist For Improving Bad Credit 

Credit is not a static concept. Your personal credit history is fluid. It is a living record of your choices and overall financial progress. If you're starting from a sub-optimal position, never fear. The items on our checklist for improving bad credit can help you form positive financial habits that will follow you for life. Let's take a granular look at how to get your personal finances back in the black. 

Start With A Baseline 

You have to know where you've been to know where you're going. The first step on our checklist for improving bad credit is checking your current credit score. That score represents a baseline metric of your overall financial health. From there, you can learn information about your spending habits in order to understand the elements that have contributed to a lowered score. Some of the things that affect that score include:

• Your income-to-debt ratio
• The total lines of credit you currently have open
• How much of your credit you’re currently utilizing
• The overall length of your credit history 
• Your payment history 

Identify Additional Problems And Discrepancies With Your Report 

Before moving on to more significant credit-building methods, it pays to review the information contained in your credit report with a fine-tooth comb. This serves a two-fold purpose:

• Identifying any discrepancies or errors that might affect your score
• Identifying major issues, such as bankruptcy, or repossession that might be still hindering your credit recovery

If you’ve been through any of the above, it shouldn’t be a surprise if they’re included on your credit report. Each of them can have far-reaching financial implications that if left unresolved can seriously affect your future credit. The credit report simply serves to point out issues that need your immediate attention.

Make On-Time Payments A Priority

Once you have an idea of your current credit rating, the next step on our checklist for improving bad credit is establishing a history of on-time payments. 

Paying your existing bills on time proves both your stability and reliability to entities like the bank, credit card companies, and other financially-based institutions. This step is of the utmost importance; on-time payments will form the cornerstone of your financial revitalization.

Reduce The Debt That You Currently Carry

Making payments on time is one thing. Reducing your overall financial burden is another thing entirely. 

Making minimum payments with regularity will increase your credit score over time, but it does little to offload your current debt. It should be one of your chief priorities to begin reducing existing debt by making larger payments when possible. In turn, this will reduce your income-to-debt ratio, accelerating the positive momentum of your financial health. 

Avoid New Applications For Credit 

Applying for new lines of credit, especially through retailers and credit card agencies, is known as a "hard inquiry." Each time you make a credit application, the hard inquiry affects your credit score. Too many inquiries can severely damage your credit, leading to a reduced credit score. Limit your lines of credit to match your existing needs. 

Targeting Bad Credit With A Payday Loan

All of the aforementioned strategies boost your credit score given time and appropriate diligence. However, there are other, more intensive methods for rebuilding your credit such as a bad credit payday loan. 

A bad credit payday loan from Utah Title Loans, Inc. can help speed you on your way to future financial prosperity by giving you the breathing room you need while simultaneously establishing payment history and debt reduction measures. Other advantages of a bad credit payday loan include: 

• The ease of the application process
• The speed at which the funds are dispersed to you
• The fact that all credit scores –both good and bad– are eligible to apply

While bad credit payday loans can be purposed for a wide range of situations, they are tailor-made for emergency situations while also helping you get back on your own two feet in a timely manner. 

Payday Loan Request: Submitting Your Online Inquiry Today

Building credit takes time, effort, and systematic diligence. Following the checklist above can greatly speed up the process. Applying for a payday loan helps you check numerous items off the list in one fell swoop while giving you the advantage of a manageable line of credit. 

Looking to get back on your feet? Take a minute to fill out our online form in order to start the loan request process today. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.