Three ways to go from bad credit to good credit
Going from bad credit to good credit can be an arduous task, especially for somebody who is used to having bad credit for so long and is having trouble getting a good credit score. I personally have good credit but I have known people who have bad or terrible credit, and they constantly tell me stories about how they are simply unable to get a good loan for their house, car, or get a good deal on a credit card. Companies that offer vehicle insurance, home insurance, and renter’s insurance do not want to deal with them.
First things first
The first thing I tell people having these troubles, people who want to make their bad or okay credit become good credit, is that they need to get a credit report online. Your online credit report contains your credit score and a plethora of other information. Since your credit score is an indicator of how creditworthy you are, banks and other lenders (and car salesmen) will make you pay more upfront and charge you higher interest rates.
Start making more money
If you do not have any money to begin with, it can be downright hard to pay off credit card debts no matter how honest you are or how hard you try. One thing you can do is start a niche blog, and use an advertising service like Infolinks, INTENTclick, or Viglinks to host ads and start making money. Do not forget AdSense banner ads; they can get you a lot of money too. This is especially a good source of income for work-at-home mothers and people without regular nine to five jobs since you will be making more money than you already make even if you do not make very much; however, some bloggers make upwards of $100,000 per year. You can also try craigslist to get a higher paying job.
Consolidate credit card debt
If these methods do not work, you can try out a credit card consolidation service. These services will talk to all of your credit card debtors (usually banks) and “buy” your debt. They pay banks to let them collect the debt that you owe the banks. They also usually shave off some of the money you owe (if you ask nicely) so that it is easier for you to pay them back. They do not make any money whatsoever if you go bankrupt or do not pay them so it is in their best interest to make sure that you are able to pay them back.
Credit card debt consolidation is not as useful, however, for people who do not have that many credit cards. For example, let us say that you have one credit card. You cannot consolidate it with your other credit card debts because by definition consolidation requires merging more than one thing. However, some companies will consolidate all of your outstanding debts (with the exception of home loan mortgage debts) into one easy to make monthly payment. So, you could still consolidate one credit card with, say, car loans and other loans.
This is a guest post by Murray Newlands. Murray is an online marketing guru who advises people on how to make money off of blogs and other websites.