6 Money Mistakes Most People Make When They Have Bad Credit
Having bad credit can make a lot of things in your life difficult. It can cause major money mistakes. It can stop you from getting approved for loans. It might make things harder when you want to start a business or buy a car. And your insurance premium could be much higher than someone with great credit.
And instead of working on the problem, many people go on and commit even more money mistakes – only making things worse for themselves. Here are 6 money mistakes most people make when they have bad credit.
1. They Don’t Recognize They Are In Trouble
The first mistake most people make when they have bad credit is not realizing they are in trouble. To ensure that you get out of trouble, it is important to be cognizant of the situation and then change your lifestyle accordingly. You should work harder to live within your means. You can do this by reducing your expenses and increasing your income.
Start a side hustle or sell all the extra stuff you have online. Or check with your job and see if you can maybe work overtime. The extra income can go a long way in paying off your debt and ensuring you do not take on more than you can pay off.
2. They Don’t Reduce Their Expenses
Expanding on the previous point, not reducing your expenses can contribute to you taking on more debt you cannot afford. Things like going out to eat all the time or hitting every sale are expenses you can – and should – reduce. Be sure to make a monthly budget and stick to it. Before making any new purchase consider how it will affect your budget.
3. They Keep Applying For Credit Cards
If you have bad credit, applying for credit cards frequently is not such a good idea. Each application means that the credit card company makes a hard inquiry on your credit report. These inquiries account for 10% of your credit score and can reduce your points further. And the more credit cards you have makes you want to use them more frequently.
4. They Don’t Pay Their Utility Bills On Time
If you have bad credit then paying for your utility bills late happens since you'll have other priorities. But this is probably one of the worst things you can do since a lot of these utility companies – such as mobile network providers and electric companies – report to the credit bureau.
And that isn’t even talking about all the late fees you’ll have depending on how late you are with your bills. Paying late or not paying at all can worsen your credit score even further and lead to foreclosures or collections.
5. They Let Their Credit Cards Get Charged Off
If you have never heard of a credit card being charged off, this means that your account is prevented from making future charges. You might think that letting your account get charged off will clean your slate but nothing can be further from the truth. Your credit card will get charged off when you have been delinquent to the point the credit company writes off your debt after selling a small portion to a collection company.
Getting a charge-off does not mean your debt magically disappears. You are still expected to pay off the debt. This will also have a major negative impact on your credit score and a charge-off will remain on your credit report for up to 7 years.
6. They Cancel Their Credit Cards In Spite
If your credit cards have contributed to your money mistakes and bad credit score then you might consider canceling them. Even though it sounds like a great idea, in actuality canceling your credit cards will increase your credit utilization – as the available limit decreases – and hence decrease your credit score.
Having some credit cards open actually gain you points, it is just a matter of doing your research. Before canceling your credit card, do make sure that it won't affect your credit score negatively.
Sometimes, no matter how many of these money mistakes you avoid, an emergency pops up that throws off your credit score. When that happens, turn to title loans Nevada for help.
Get A Title Loan When An Emergency Hits
Emergencies such as sudden medical bills, auto, and home repairs, or unexpected travel can put you in a bind and in need of urgent cash. And if you have bad credit then getting approved for a loan can be almost impossible.However, this is where title loans can come in handy. A title loan is a loan you receive when you put up your vehicle’s lien-free title as collateral. When you apply for this loan, you won’t be automatically turned down if you have bad – or even non-existent – credit history. And there are a few other benefits to this kind of loan.
Benefits of Title Loans
Our Process Is Simple
Another advantage of title loans is that they are easy to acquire and ensure fast payment. With Nevada Title and Payday Loans, the whole process is hassle-free and takes just 30 minutes and you can get a maximum of $15,000!
You Can Keep Using Your Vehicle
If you get a title loan, you will be free to use your car as long as you keep on making the payments. You will have to ensure that the car is in your name and lien-free, meaning there is no outstanding claim against it.
You Can Use Any Vehicle
Not only do you get to keep your vehicle with this loan, but you can also use any vehicle you own for the loan! Just because this loan is sometimes referred to as a “car title loan” that doesn’t mean you must have a car. If you happen to own a truck, SUV, motorcycle, RV, or any other kind of vehicle, you can use that title as collateral. Just make sure the title has no prior liens or judgments.
How To Acquire A Nevada Title Loan Near Me
To acquire a title loan, you can either visit a store in an old-fashioned way or you can go online. This is the step-by-step process for acquiring car title loans:
- Go to our website and fill out the online form. Make sure you select title loans because we also offer payday and installment loans;
- Once you are finished, you will get a call from a representative who will ask you to visit one of our title loan locations in Nevada;
- You will have to bring the car’s title and your driver’s license or ID, and your car for inspection;
- The representative will check your car and let you know the loan amount you are eligible for;
- If the representative can approve you, you will get your cash the very same day.
It really is that simple! And the best part is Nevada Title and Payday Loans also offers payday loans for those people that do not own a vehicle they can use for title loans.
Having bad credit can really make things unnecessarily difficult. Avoid these pesky money mistakes and take the much necessary steps to fix your credit!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.