Proven advice to help fix your finances.

So you are in need of a little free bad credit advice? The recent economic troubles have created so many people with a bad FICO scores that it would be worse than the hordes from a B movie zombie flick if we were to all meet on the streets at the same time. Due dates are missed, bills remain unpaid, and the unfortunate pile of overdue notices stack ever higher next to the door.

Adding to sweat inducing anxiety are the overwhelming penalties and charges added on to what you owe adding insult to injury.

Bankers look down their nose as you sit humbly asking for help, and you are left feeling alone, with nowhere to turn for help to meet your basic needs and pull out of this hellish financial situation.

Well I promise to give you the bottom line hard answer financial advice that you need to pull out of this financial mess.

Not what you want to hear, that has proven ineffective and can quite possibly lead you worse off than when you start -- but the hard nosed advice, the tough love credit repair advice, to get you back on track improved scores and putting money in your pocket month after month; a path towards living the life you deserve.

 

What is Considered Bad Credit?

My advice for people with low scores begins with a little background. Most directly if you have low FICO numbers than your credit is bad. A really low score is generally considered to be 500 or lower.

It is possible to have a high score and be considered bad overall if your report is jam packed and overflowing with bankruptcies, foreclosures, repossessions, seizures or other red flags that label you as a financial delinquent.

Additionally lenders have their own scoring standards so some banks will consider higher scores bad and some lower. My advice is to stop obsessing over your FICO score. If you are getting declined at every borrowing opportunity, and lenders sneer when you apply for financing, regardless of your past history, consider it as not good enough.

Rather than stressing over the minutiae of the algorithm the reporting bureaus use to determine your rating, I recommend you shift your focus to the fundamentals of good personal finance. Namely your income and your expenses.

Focus On What Matters

The first step we typically recommend is to let a professional firm work to clean up your credit report while you focus on cleaning up your financial life. Simplify your money matters, focusing on increasing what you earn and decreasing what you spend.

When a person has a low FICO, your chances of applying for and qualifying for lending or charge card is made more difficult. Additionally if you get approved for financing, the interest you pay will be a lot higher than the interest rates people judged a low risk get sitting in their ivory towers.

Also, your rating will hamper your ability to get work and acquire insurance coverage as employers and insurers often check your score to determine eligibility and pricing.

Have I convinced you of the benefits to improving your credit yet?

It's worthwhile, it literally saves you money and opens opportunities.

I Want To Fix My Credit But I Need Money Now!

Lenders who provide financing to people with a bad scores will advise you to simply use their various short-term lending offers. The wisdom you will hear from financial advisors on the radio is that these loan options are predatory and amount to financial suicide.

The truth, in my opinion, lays somewhere in between. Borrowing is not cheap, but it can often be the only opportunity you have to reestablish yourself financially. Besides family and friends, it is certainly the only option for borrowing cash in a crisis when you are a high risk.

If you are able to manage debt responsibly, then bad credit loans help, and can be used by you to meet your families needs, all the while working to fix the long term financial funamentals that found you in difficulty.

Ultimately, I feel you should use what resources are available to help you reach your goals.

Additionally, earning more money and keeping food on the table, especially at the rate my kids eat, does not happen at the snap of a finger. One thing I do know is that, though it is possible to do it all yourself, trying to do it all yourself is a recipe for disaster.

Many financial gurus endlessly sneer at you as they share their bad credit tips, looking down all the while that you didn't prepare properly or save as you should have

The truth is life is full of unexpected challenges and if you find yourself desperate for money, and it is your fault, we can only learn from the string of events that led to it. Repetition of the same bad choices is the only shame.

Bottom Line:

Take care of your immediate needs, in any ethical way you can, and then shift your focus to the big picture issues that really matter. What do I mean by that?

Recommended Debt Advice

After you have borrowed the money you need, take a hard look at your personal finances, roll up your sleeves and get to work. Slash expenses that are not absolutely necessary, budget out what you need to live on a budget, and make a list to prioritize your efforts at increasing your income.

Restructuring your debt with consolidation lending can buy you fast relief, reduce bills and the financing is easy to get approved regardless of your history. Get a credit repair service working to rebuild your scores. Let professionals do what they are best at.

Spend your time working at what you are best at. Focus like a laser on increasing your revenues the best way you know how, whether it be picking up more hours at the office, wheeling, dealing, selling--but not stealing. Keep it ethical of course, don't fall into the trap of taking shortcuts.

The marines have a saying, fast is steady. It is great advice, SURE you want results now, BUT take the time to do it right, don't let desperation sabotage your efforts for short term gains.

The Best Peresonal Finance Advice

The best advisor you can get is provided by your gut. The financial gurus, advisors and family members only truly understand a small slice of your financial life. You are the one most aware of the details of your personal finances.

That being said, for those looking for actionable, do-it-yourself credit score advice you can check out our complete D-I-Y credit repair guide, and for more information you can visit the FTC provided recommendations.

A few important bits of the credit cards advice we recommend following for success: Having too many accounts can negatively impact your score and it is generally advised to reduce open credit lines to no more than 4 charge cards, and 4 - 6 major active loans.

When agencies see that a person owes money to a lot of creditors, this is understood to decrease scores.

Additionally the experts advise you to maintain a balance on your charge cards at roughly 30% of the total you can spend. Maintaining on time payments from month to month will improve your scores and actually reflects better on your report than having 100% paid off cards that are never used.

In Summary:

One last bit of financial wisdom: once you have cleared yourself of all debts, avoid borrowing accept in precisely managed and advantageous situations. A low FICO is simply expensive. Find out more about professional services that offer credit restoration done for you if you are interested in improving your scores professionally.

Your family and friends will be all too happy to share with you nonstop their financial wisdom, listen, smile attentively, but follow your instincts and take action using proven, time-tested recommendations to get results. Be responsible, be ethical, and be tenacious and you will surely right your finances, put your bad credit behind you and achieve your wildest dreams.