Your credit history will be the basis of your financial health, which is why you must maintain a good credit score to have more financial freedom. That’s because, in case of emergencies, where you need to take out a loan, lending companies will be more than likely to approve it just by taking a look at your credit score. Aside from that, it will be easy for you to apply for an auto loan, mortgage loan, or even a new credit card. But it doesn’t mean you need to do all three at once because it might destroy your credit score.
What if you’re currently dealing with bad credit? What are the tools that you can utilize while in this situation? At creditbono, they have a variety that you will surely like. Let’s find out what some of these are.
Second Chance Credit Cards
Second chance credit cards come in two forms, which are secured credit cards and unsecured credit cards. Secured credit cards are those where you need to make a deposit first before opening it. Most banks or financial institutions are willing to approve these credit cards because of the less risk associated with them. If you fail to pay for your bills, they will just use your deposit.
On the other hand, unsecured credit cards are without any deposit, but it will be harder to apply for them because of your bad credit history. So the best course of action is to apply for a secure credit card first and transition to an unsecured credit card after making an excellent payment history.
Personal Loans are those where you will only get approved if you have a cosigner. You don’t need collateral to be approved. But you should remember that your credit score and qualification requirements will determine your interest rate. Most of the time, the loan term for personal loans is two to seven years. But if you have bad credit, it will only be from one to five years. It is also worth noting that the approval of your loan will depend on the reason for your loan and the amount you’re asking for.
Payday loans are like asking for a cash advance from your employer, but these come with a high interest rate, and you need to pay for it within 30 days. But you don’t need a cosigner to apply for them, and these are usually an excellent option for individuals with poor credit. You only need to present proof of employment, a valid ID, a bank account, and you need to be at least 18 years of age to apply.