Has Your Credit Improved? Steps You Can Take To Further Improve Your Finances
If you previously had bad credit and have worked diligently to bring your credit back up to fair or good levels, then you may think that your financial work is done. However, if you really want to keep your finances under control and ensure that you have a positive financial outlook going forward, there is still more work that you can and should do. Get to know some of the steps that you can take to further improve your finances after you have brought your bad credit back to more acceptable standing so that you can have the best financial future possible.
Consider an Auto Loan Refinance
When you had bad credit, you may have had to take out a car loan in spite of your poor credit. Of course, with bad credit, you likely did not get the most ideal terms when it comes to your auto financing. People with poor credit tend to have higher monthly payments and significantly higher interest rates. There is also the likelihood that you had to get a cosigner to help you secure your auto loan at the time.
However, now that your credit is at more acceptable levels, you may be able to refinance your auto loan to get better rates and to remove your cosigner (if you would like). Before you apply for an auto loan refinance, you want to make sure that your current auto loan is current on its payments and that your loan has not been negatively reported as past due to the credit bureaus at any point in time.
Refinancing your auto loan will help your finances by freeing up more money now and/or in the future. Lower interest rates will save you money in the long run. You may also find that in addition to lower interest rates, you can swing lower monthly payments as well. This will further save you money in the here and now.
Get Yourself A Credit Card To Rebuild Your Credit
Having poor credit can make it next to impossible to get any kind of credit card. However, now that you have your credit under better control, you can try to get yourself a credit card again. Because you are still in the process of rebuilding your credit, you will most likely not be able to get credit cards with particularly low interest rates or high credit limits. This is important to keep in mind as you look into credit card options.
Look at the credit cards that are specifically designed to rebuild credit. Some of these credit cards may ask that you provide a deposit for the account to secure the card (a precaution to protect the creditor in case the credit card does not get paid). Select the card that works best for you and make sure that you do not overspend once you have it.
A good idea is to use your new credit card for a tank or two of gas per month. You can then pay off the full credit card balance every month. This will boost your credit further and establish a positive credit history going forward. Once you have done this for several months, you may be able to get your credit limits increased and secure better interest rates in the future. The key is not to spend money on your credit card that you cannot pay off within the same month, at least as you are rebuilding your credit.
With these tips in mind, you can continue to improve and manage your finances after you have recovered from having bad credit. For more information, contact a credit union, such as Saginaw Medical Federal Credit Union.