Picking the right solution to solve your bad credit issue is quite a challenge. It would go to a stricter level when you are suffering from unemployment. When these two problems meet head-to-head, life becomes a little troublesome for the unemployed.
But life can be even more problematic than this. You can still work at another job. Find good means of improving your financial quality. Maybe you can start a business as well. Getting employed in another company or finding another employer might be easier for you than for others.
So, instead of thinking about the problem, think about the solutions. In unemployment, review your financial status. Make adjustments and get yourself on the ground where you can meaningfully spend money and save it.
This is where the point of credit score comes in. If you have got a low credit score, then chances are it is costing you money. You miss out on the credit card perks. Managing a poor credit score while having little to no income is also a factor that lowers your credit score. To tackle this problem, we can read this post and learn how we can make a good score and keep it that way permanently.
How to Elevate Your Credit Score and Maintain It While Unemployment
If you are unemployed, then chances are you have used your credit card to make essential purchases. Yes, these decisions on using money or paying it are difficult to make in the situation that you are in. But essential needs are unavoidable. In that regard, it is natural for you to get your credit score come to a lower mark.
But we can still change it and get a solution to recover from this painful condition. The process begins with the point you are looking at below:
- Negotiate with Your Credit Card Provider
Professional organisations issue credit cards. They fix your credit limit, your credit card interest rates, and fees accordingly. When you are unemployed or have chosen to resign from your present job, you can discuss the matter with your credit card provider. Don’t hesitate about that.
Many credit card issuers will help you in problematic situations such as unemployment. You need to contact them to negotiate a more cost-effective way to maintain your credit card. Start by asking them to reduce the credit card fees and interest rates.
If you have a good credit score and your payments have been made on time with your credit card provider, you may get support. For example, some credit card companies can help you with forbearance. It is a temporary hiatus from paying fees or credit card bills.
Specific plans with these organisations can help you pause credit card payments for a particular time. Although it is a good way to help unemployed people, not everyone might be eligible for these services. That is why you must have a good word with your credit card organisation. If such plans do not work, you might use an alternative plan. Such plans vary with different credit card issuers.
Don’t hesitate to let your provider know that you are in trouble. It will help the organisation to note the situation and help you with alternative payment options. This timely step might help you ‘buy’ time to rearrange your credit card payments.
- Manage a Bad Credit Score with a Loan
Loans can help you recover from bad credit. But you need to use them in the right ways. It is a healthy tool to fix a bad credit score.
You can take out any loan to manage a bad credit situation. But here is where the problem may start. You see, loans are always achievable. But, with many mainstream lenders, a bad credit loan might not always be possible. You might not get a loan from a lender because of a poor credit score. Even if you get loans, getting the money approved again will take longer than usual because of your poor credit score.
This is where Loans for the Unemployed with Bad Credit from a direct lender in the UK come in. The direct lender is an organization specifically designed to help a borrower with particular loan products. One of them is a bad credit loan, which is a loan given according to the income statement of the borrower.
Now you might be thinking about how to get a loan for bad credit when you are not earning enough. Well, the answer to that is easy. Even if you are unemployed, you can get yourself sanctioned for this loan when you state your preferred repayment method formally. Some unemployed borrowers still have some income from benefits programs and other part-time work, which direct lenders accept for repayment.
The flexibility of the direct lenders is a perfectly favourable condition for the unemployed borrower. Taking this loan out in bad credit will help the borrower pay all the pending payments using the credit card. This naturally elevates the credit score. Repaying the loan to the lender back on time will also help the credit score be elevated further. That is what you are looking for, right?
- Consolidate Credit Card Debts (If Any)
This method works quite the same as the previous method. When you have credit card debts and cannot pay them back at the right time, you might face a problem and of extremely bad credit score later. The only way to come out of this problem is fast and effective debt consolidation.
Look for money and make sure these debts are paid off as quickly as possible. Use improved debt consolidation methods such as the snowballing method or the avalanche method to repay remaining debts. You can use other tactics to repay a loan as you like.
One of these other ways is to consider bad credit loans from a direct lender in the UK to consolidate debts. The trick this loan does is that it takes in all the other debts under one debt, which is the present loan. It helps you to come down to one interest rate and repayment term from many. Thus, you won’t be confused anymore with debt repayment and will find repaying comfortable.
Studies have proven a single rate, and repayment terms have helped borrowers make fast payments towards repaying debts. The simplified repayment method motivates the borrower to make fast repayments and get over the debt soon.
To Conclude
With all that being said, you also need to do something on your part. The first thing you can do is to make things more cost-effective because you are suffering from unemployment. Making small lifestyle changes and keeping impulsive thoughts out of the way, using the needed services will only help you save more money. Use this habit to transfer the saved money in paying your credit card bills on time, and you will have a good credit score…even in unemployment.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
