"A bad credit score can make it feel like you're going through life with your hands tied. All the things you want to do to improve your life, like buying a house, getting a loan for a car, or getting a credit card, suddenly become impossible. Even worse, the more things you apply for, the worse your credit score might get."
"If you have a good credit score to start with, it can be easier to reduce your debt using a debt consolidation loan. But even with poor credit, you can eliminate debt one by one using the snowball method, where you focus on paying off the smallest debt you have. Then, once it's paid off, you move onto the next smallest, and so on. Each eliminated debt will help your credit score."
"As well as paying off your debts, which is the most reliable way to improve your credit score, you should also look into credit-building cards , especially if you don't have much history. These are credit cards that are designed to help you improve your score over time. If possible, a higher lending amount is ideal, because this means you borrow less of your total amount."
A poor credit score limits access to mortgages, car loans, and credit cards but can be rebuilt through consistent financial management. Begin with a clear audit of income and expenses and cut discretionary spending to free funds for debt repayment. Use debt consolidation when credit permits, or apply the snowball method to eliminate the smallest balances first and build momentum. Add credit-building cards to establish or improve history, aim for higher credit limits to lower utilization, close newer accounts before older ones to preserve account age, and keep utilization under 20% for long-term improvement.
Read at London Business News | Londonlovesbusiness.com
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