Everyone deserves a luxury lifestyle, and for many with bad credit, they might consider this an unachievable goal. However, there are ways that you can still overcome your bad credit and live the lifestyle you deserve. You’ll need to build up your credit score and make some changes to how you spend money, but you will achieve your goals in time.
Give Yourself A Cooling-Off Period Before Purchases
A big cause of many people’s bad credit is making impulse and unnecessary purchases. We are constantly inundated by advertising through social media, TV and film, which has led to a sharp increase in material purchases in recent decades.
If you find yourself sucked in by high-pressure sales tactics, you should consider giving yourself a cooling-off period before making any purchases. This gives you time to consider whether you really need the item and can help you reduce your spending, which in turn can help you boost your credit score.
Pay Down Your Debts
Paying down your credit is crucial to ensure you have more money each month and to help your credit score improve. If you are using more than 30% of your credit, this can contribute to your poor credit score. It is best to start by paying down the debt you have with the highest interest rate, as this will save you the most money over time.
Find A Bad Credit Mortgage
Just because you have bad credit doesn’t mean you can’t own your dream home. There are lenders that are dedicated to providing mortgages to people with poor credit history or CCJs. This can be an excellent way to get onto the property ladder without your credit score holding you back. You can find help and expert advice on bad credit mortgages from the brokers over at MoneyNest.
Shop Consignment
If you love the finer things in life, then there are ways you can purchase these without breaking the bank. Consignment shops are the ideal option for anyone with a loved of designer clothes and bags who may not be able to afford the full price items. There are plenty of consignment stores both online and brick and mortar, so do your homework to find the right options.
Take On A Side Gig
The more money you have coming in each month, the faster you will get control of your financial situation. You’ll be able to pay down debts quicker and improve your credit score rapidly. You’ll also have more money to spend on the luxury items you deserve. Consider a side gig walking dogs for your neighbours, taking on the odd bar shift or offering services like copywriting via freelance.
Use A Co-Signer
An excellent option for anyone that has a loved one willing to help you out is to ask them to be a co-signer. This is where someone else co-signs on a loan, tenancy agreement or other financial commitment. You should ask someone with good credit and be aware that they will be jointly responsible for the agreement in the lender’s eyes. You should be diligent in making payments promptly and in full to avoid the debt passing to your co-signer.