Some people find it easy to get a credit card, but life can be hard when it comes to money. If you're self-employed, you could lose your job. If you're not, you could go through hard times, have bad months, or for any other reason, your finances could get tight.
What does this all mean?
Well, when times are tough, people can get into more debt and miss important payments like mortgage bills, cell phone bills, credit card bills, and other payments that can hurt their credit score. Once your credit rating has been hurt, it can be hard to get it back up to where it was.
When income goes down, debts can get worse, payments can get harder to make, and all of this can add up and make you feel overwhelmed. When this happens, which doesn't happen all that often, life can be hard and expensive, especially in developed countries.
If things get this bad, there is always help, and even if your credit score takes a hit, it can be fixed. A debt management plan could help you get back in charge of your money by letting you pay only what you can afford after paying for living expenses.
Your credit score will go down, but once the debts are paid off, it will probably go back up, no matter how many letters you get saying it will take you 6 years to get back on your feet.
Once you've paid off your debt, you should have a stable job or, if you're self-employed, your business should have improved, so your income will be higher. If you get a simple credit card, buy small things on it, and then pay it off quickly, your credit score will go up quickly. If you do this for about a year, your credit score should be great.
People with bad credit can get a credit card.
People with bad credit, on the other hand, do have a choice. As long as they have some kind of income, they can get a credit card. Usually, the company will accept your application for a credit card and then give you a much higher interest rate than usual. The good news is that if you keep making your payments on time, you will be able to apply for a new card with a much lower interest rate. When this happens, you can really start getting a handle on your finances and improving your credit score.
