Having a bad credit rating can be quite a problem today, especially for people that highly depend on the type of loans to get them through the various day to day expenses. The worst part of it all is that most of the time, being placed in the category of loans for people with bad credit rating is really not the fault of individuals but is actually caused by the circumstances that have befallen them. Incidents such as losing their job and other economic reasons are usually why these people are unable to pay their bank loan obligations thus affecting their credit rating or score.
However, it is not the end of the world if you get into a situation where your credit standing has gone bad because there are ways and means to reverse the situation. The following are some finance tips to help you recover from a bad debt rating situation.
- First, you will need to find a way to pay off all your existing loans and credit card bills. This may sound impossible but if you believe in the saying that all problems have definite solutions then you will be able to find or at least plan a way to pay off your current debt. It may take a while, but this is a very manageable problem.
- Second, make sure that you land a steady job. Again, this may be hard, especially with the current economic situation at hand. However, it is not a job per se that is required of you, but proof of having a steady monthly income. Remember that with a little ingenuity and perseverance, you will be able to find a way to earn a steady income.
- Third, you can start a small business by applying for small loans. There are lending companies in Singapore that will allow you to borrow a certain amount of money as long as you can prepare and submit to them a business plan that would should at least a 70% success rate. If approved and your business gets off the ground, then this will allow you to earn enough to pay off some of your previous debt obligations.
- Fourth, if your credit card is still active, make small purchases on it. Being able to do this and paying it back promptly will give a positive effect on your credit rating. However, make sure that the purchases you make on the card are reasonable and small such as for just paying for groceries and meals. Make sure that you don’t apply for a new credit card and refuse a pre-approved or don’t cancel your active credit card because doing any of these three will affect your credit score tremendously.