ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Mortgages & Loans

Repair Your Bad Credit Score

Updated on September 15, 2010

Repair Your Bad Credit

There are many ways you can repair your bad credit. Understanding credit scores is a complicated process but the easiest way to make your credit score go up is to pay all your bills on time.   Remember, the higher your credit score, the better your chances are at qualifying for credit cards with introductory APRs of 0% for 1 year such as the Chase Freedom credit card or the American Express Blue credit card. These shiny credit card offers are available only to those with a good credit score of 700 or above.

The easiest way to repair your credit score is to qualify for guranteed loan services that are feasible without draining your checking account. Most ways involve you to pay a fee as little as $20 with some higher than $100. But there's a catch and these services are available only for people with bad credit, they have been with the same employer for at least 2 years, they have a checking account with direct deposit, and they earn a minimum of $800 each month.

There are many short term loan lenders out there, think of it as payday loans, and these services are quick. You can qualify for a loan of $300 with a bad credit score of 250 if you bring home at least $800 a month. Payday loans or lenders with the logo "get-cash-fast", are not your best choices because these guys normally charge you double for what you borrowed. Say you borrowed $300. Your final payment will be $600 and some lenders can be evil and tack on an interest rate to that $600.  

Online lenders are the way to go! Many online short term loan lenders, like Money Mutual, are able to deposit funds into your checking account within 24 hours or the next business day. You will need to call your bank and check if they posted your loan funds to your account. Many online short term loan lenders also don't add on interest rates or charge you double but use a paydown system instead. Say you borrowed $300, your fee charge will be $90, so the total amount you payback will be $390 if you pay off the loan in full before your first payment is due. If you don't pay off your loan in full, then you approve your lender to use the "paydown" system.

For every $50 dollars applied to pay down your loan, $15 dollars will be subtracted from the $90 dollar fee. If you pay $50 for your first month, in your second month, you new balance will be $250 for the loan but your fee charge will be reduced to $75. So now you owe $250 plus $75. Another $50 to paydown your loan in the third month, then for the fourth month you will owe $200 plus $60. So its good to paydown your entire short term loan in full before the first due date.

Applying for these guaranteed short term loans is a good way to raise your credit score and get cash in your checking account very fast. Yes you may lose money in the fees but once you get your score up to 700, you can apply for credit card offers that has cash back rewards and 0% introductory APRs. Always ask question first before you give your approval for anything and if you're dealing with an online short term loan lender, ask them to email you a diagram of their paydown system so you know how much you will owe. A $90 one-time fee is better than a 6-month $250 fee. Online short term lenders is way better than those Payday Loan lenders you see on the side of the road.

 

 

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)