Low Credit Score

A Brief Low Credit Score Survival Guide

If you have a low credit score the reality is that you also have bad credit. This is no cause for despair, however. A bad or low credit score does not have to be, and it never is, a permanent situation. Here are some ways to survive a poor score and improve your credit.

You can also find out more information about bad credit loans by returning to our homepage.

What is a Low Credit Score?

FICO credit scores range between 300 and 850. A 300 is the lowest score and 850 is the highest. A score that falls under 540 is considered very poor. However, there are ways to get any low score to go a bit higher.

Even if your score is above 540 but under 640, you will want to work to raise your score so that you can enjoy the most favourable terms possible from lenders.

How to Boost Your Score

First of all, check your credit score and your report. You can get a free report annually. Make sure everything is correct.

If anything is inaccurate, you will want to write to the credit bureau reporting the mistake in order to have it removed. By doing this, you can see a rise in your score.

If everything is correct, but you have some collections reported, you should do your best to save up enough money to try and settle with the collection agency. This may be a different company than the company you received the credit from originally.

While you work to settle on bad debts to get them off your report, you can also apply for bad credit loans or secured credit cards. Secured credit cards require that you place a sum on deposit with the lender. You can borrow against that money, the company will report your payments as you make them and in a short time you can see an improvement in your score.

Please Note – You can boost your credit score by doing this.

Getting a Loan is Not Impossible

Even if you have a low credit score, it is not impossible to get a loan. Some lenders will not check your actual score before approving you for a loan. They may charge you high interest rates, but if they report your timely payments to the bureaus, you are going to see a rise in your score.

There are some creditors that look at your collateral and earnings before approving you for the credit you deserve. Never despair. You can survive a low credit score and watch it improve over time.