Having poor credit makes it very difficult to get by in the world day-to-day. In today’s economy, even some of the super-rich are jumping off of buildings or throwing themselves in front of speeding trains due to financial problems. If things are that bad for those elite few, it’s no wonder that the average person is struggling to make ends meet.
The paradox about the world of personal finance is: the less money you have, the harder it is to make and save more money. Doesn’t that seem like a paradox? And similarly, the worse your credit score is, the harder it is to get anyone to agree to loan you money (which is something that could help you to improve your credit score). Go figure!
It’s not easy out there today, but luckily there is hope. There are ways to get financial assistance, even if you have poor credit. In fact, the best kind of financial assistance with poor credit is to help yourself, rely on friends and family, improve your credit score, and consider a short-term loan to tide you over.
Here are 5 tips for people looking for financial assistance with a poor credit score:
1. Share your expenses:
If you are under financial pressures from all sides, it is safe to assume that you have already done everything you believe possible to cut your expenses. But, as we know, there is a limit to just how much your expenses can be reduced. Well, here is another great way to reduce your expenses: share them with others with their full cooperation! Here are just some of the ways that people share their expenses successfully every day: car pooling/ride sharing to save on gas and car payments, taking on a boarder or roommate to share living expenses, and sharing a magazine or DVD rental membership with a friend. Get creative – there are tons of ways to share without having to give up what you need or what you love.
2. Ask family and friends for help:
Family and friends can be a great resource during difficult times. Most modern people have been taught to be self-reliant and not to depend on the charity of others. However, a sense of pride should be the last thing between you and asking for some financial assistance from family or friends. Of course, you can benefit from family/friend assistance without actually asking for a loan or getting a handout. For example, if you need to take on a second job or take continuing education courses to improve yourself, ask your family or friends for the gift of time. Get them to watch your children now and again, for example. Relying on family and friends during hard times is not a shameful act. Rather, it can be a great way to strengthen the bonds between you.
3. Consider taking a second job in a field you are curious about:
Even though taking on a second job may not seem sound desirable or even possible given your current schedule, think again. There are many part-time jobs available at odd hours of the day or night. Working a second job can also be a fun way to explore something new. For example, if you have always wanted to work in the medical field, try getting a job in a doctor’s office as an assistant. This will not only earn you some extra money, but you will have the opportunity to spend time in a totally new environment.
4. Stop taking on credit card debt in order to improve your credit score:
Of course, one of the best ways to improve your credit score during hard times is to stop racking up new credit card debt. Excessive credit card debt is a real credit score killer. Not to mention that it is very expensive: paying a high interest rate on credit over time really ads up in terms of your monthly expenditures.
5. Take out a short-term loan:
A viable alternative to taking on more credit card debt is to apply for a short-term loan. Short-term loans have a pre-defined loan term, so you have an incentive to pay them off early. This means much less in interest payments relative to putting more money on your credit cards. Short-term loan opportunities abound, even for people with poor credit.
If you need financial assistance but have poor credit, the first person you need to rely upon is yourself. Next, consider enlisting the help of family and friends, reducing your credit card debt, and working to improve your credit score. And, consider a short-term loan to get you through a pinch.