A low income hampers your ability to be in control of your finances. Budgeting for what you have earned as well as having an impressive credit ranking will help greatly in bringing sanity to your financial world.
When it comes to credit scores, it is not that hard to make considerable harm to your borrowing potential. Many of us do not know the damage we constantly inflict on our credit ratings. They need to put some effort towards eliminating these risk factors. There are however already bad situations that need fixing. Attention must also be given to the duration of the control exercise. The the level of damage is directly proportional to the time it will take to restore your positive score.
The first step to take would be to open a bank account. This forms the basis of the whole rebuilding exercise. You may not have a lot of money to deposit in that account, but when assessors are looking into your already poor situation, lack of an account is detrimental to your fate. The more solvent accounts you hold, the better.
You then need to start the process of settling debts you have on your credit. When you declare bankruptcy, almost all your debt is wiped. If, however you are simply in a bad financial situation, then it is important to begin clearing those debts on your accounts. Should you be able to clear some of these debts in one round, you shall benefit from the provision of large discounts on the debts. Once you are at a stage where you have either cleared them or are regularly paying their installments, you can now begin actively promoting your credit score.
Your installments depositing needs to be made well before time. This will ensure all the progress made is not reversed again. The debt collectors have a duty to report on any default payments, as well as your pattern of making payments. Your improvement efforts will gain from a positive report.
The next step is to get a credit card. A a secured card is the only viable option when your rating is poor. The security required can be a deposit made to the account or some other acceptable form of collateral. Maintaining the card well while you use it will ensure a good report and subsequently positive ranking. People fear credit at this juncture, but they are advised to have a little of it and be prompt with payments, which will better their score.
After arriving at this stage, you then need to get a small loan. To improve your score, you shall have to maintain your regular payments. Asking for a small sum and doing proper payments is ideal.
A final step is to ask your friends to allow you to put one of their lines of credit under your name. If their credit patterns and score are impressive, having them reported under your name will greatly improve your standing.