People can get into a debt home very quickly and then find themselves with bad credit. It can happen at any time even when you think you are immune. All it takes is a health emergency or a lost job to get into financial trouble.

While it may seem that once your credit gets into a bad place that it will be impossible to fix, the reality is that there are a lot of options for those with bad credit. You aren’t shut out of financing it is just more of a challenge and you have to be careful.


In this article, we will go over how to rebuild your credit score so you can get back to having good credit. Once you do this, your financial health will benefit.

Buy a car

It is the lack of reliable transportation that can keep people in a poverty cycle for a long time. It’s important to be able to buy a car that will allow you to get to work and get yourself out of that financial hole you are in. A car is a major expense so it seems like a long shot to be able to get financing for a new one.

The reality is that you are very likely to get financed for a new car even when you have bad credit. You just can’t expect to get a good deal on the car and you will pay a higher than average interest rate. Luckily, there are dealers like King of Cars Texas that do in house financing so they can take on risky borrowers.

The extra cost of the car plus the higher interest rate will pay off when you’ve been making payments on time for a couple of years. You will see how quickly your credit score goes up as a car is not an insignificant loan to take on. Paying on time shows that you deserve for your credit rating to get back to normal.

Loan yourself money

Different banks have different names for this type of system, but it is essentially a passbook loan. The way it works is that you go to the bank with cash and open a secured loan with it. You will deposit the money in an account that you can’t withdraw from without paying a penalty.

Then, you simply decide on the term for the time it takes to pay off. As you pay, the bank is reporting this as you paying back a loan and it will be picked up by the credit reporting agencies. At the end, you will be given your money back that you deposited. You will pay interest on it, but it is much less than a traditional personal loan.

Get a cosigner

The quickest path to getting financed is to find somebody to cosign a loan for you. It is risky on their part as they are putting themselves on the line if you stop paying. Their credit report will take a hit along with yours.

If your cosigner has confidence in you that you will be responsible then this is a good way to get back on your feet.