5 Ways You Can Survive with Bad Credit

*This is a collaborative post on ways to survive with bad credit

A bad credit score equals bad news. A less-than-perfect score makes things pretty limiting and quite expensive for you. You may not get to enjoy a few services, such as acquiring a loan. 

A dwindling economy is primarily to blame for the increase in poor credit scores. However, according to a study, 2012 had a 2.1 percent decrease in people with poor credit compared to 2011. If you’re struggling with a credit score, you should know you are not alone. Almost 1 in every 4 Americans has a credit score of less than 600,

Apply for a Job

One way of settling your credit is through getting a job. You may be struggling to pay back your debts. A well-paying job is the most effective solution. While some employers consider credit scores when taking up a new hire, the majority of companies do not. Your bad credit shouldn’t deter you from applying to different jobs.

According to the Society for Human Resource Management survey, 53% of HR professionals do not carry out credit checks when hiring. 

If you are asked about your credit score, it is essential to be honest and not panic. Lying about it can limit your chances of getting a job. Besides, your recruiter can access your credit score if they want to.

Renting an Apartment when you have Bad Credit

Some landlords may be strict about offering tenancy to those struggling with debt. In such situations, you may be asked to get a co-signer or pay a large amount of deposit. However, co-signing can lead to a disruption in relationships if you forgo your rent payment. Therefore, it is best to deal with your landlord on your own.

You can commit to paying a large deposit. For example, some landlords request half a month’s rent for those with good credit and an entire month’s rent security deposit for those with bad credit.

Find out if your lease accommodates a security deposit refund. You can also request your landlord to break the deposit into smaller payments. Some will understand your financial situation.

Instead of buying new appliances for your apartment, you can rent instead. Find out how you can rent a tv with no credit check.

Find a Wireless Provider

Most internet service providers shy away from clients with bad credit scores. You may be asked to pay a deposit depending on how low your credit score is.

If you can’t afford the deposit, you can go for a more affordable prepaid plan. You may have to pay the total phone price; however, the monthly subscriptions are reasonable.

Avoid Borrowing Money when you have Bad Credit

Some institutions target individuals borrowing money with bad credit. They may charge you a high-interest rate which aggravates your credit situation.

Instead, you can get a credit card that accommodates your monthly needs. Be sure to pay the bill in full monthly. An alternative can be joining a credit union. Credit unions have less strict terms compared to banks.

Fix Your Credit

Eventually, you have to get your credit score back on track. Then, you can work with a financial advisor to help you plan your finances. Avoid unnecessary costs that will pile up your debt burden. Create a home budget and stick to it.