Your credit can be a very delicate thing. Having bad credit is something that most of us have to deal with on a regular basis. It may have been caused by an unplanned extended hospital stay or it could be from a divorce. Either way, the bills just started to grow out of hand and now your credit is at an all time low. Just because you are in this situation does not mean you need to give up hope on purchasing a new home or the car your family needs. Below are some tips for single fathers (dads) or anyone having trouble with bad credit.
Cosigning on a Loan:
Cosigning on a loan for the person whom does not have bad credit is a very serious responsibility. Take this into account when asking someone to cosign with you. Cosigning is a good way to get the financial help that you need. The person helping you needs to have good credit to counter balance the troubles you have had with yours. This person needs to be able to assure to the bank your ability to make payments on the loan. The big thing here is that if you default on the loan or miss some payments the cosigner of the loan is also going to be responsible for the payments. Make sure you choose a person that you trust and one that trusts you and understands your financial situation.
These services will not help you get a loan but, they will help you try to clean up your credit score so that in the future, you will be able to get a loan that you want. These types of companies are set up to work with the banks and credit card companies to help bring your monthly payments down and they also try to set up new payment plans to try and help you get your debt paid off faster, the only prerequisites for this are that you have a steady source of monthly income and that you have the ability to make a monthly payment.
Dealer loans for Autos:
When you try to purchase a vehicle and you have bad credit, most banks will just give you the blanket denial. They usually don’t care about your personal story and just use formula from a spreadsheet to make their determination. Car dealers on the other hand, will have more wiggle room and sometimes can manage to make a deal with you that most banks can’t. Unfortunately, you will probably be paying a higher interest rate than someone that has better credit. Also, you might not be eligible for rebates and other offers but, you will be able to take the car off the lot. The only warning with this is make sure that you understand what you total monthly payment will be which should include all of the finance charges before you put your name on the bottom of the contract.
When you have bad credit it may seem like the world is over but, that is not the case. You should make your goal to clean up your credit as best as you can. Try not to get in too deep and try to stay positive. Things can get better for you it will just take some time and some better decision making.