Use your credit cards to improve your score.

Your credit cards, while often the biggest culprit when it comes to bad credit scores, can actually be used to improve your credit score, if you use them properly. This is particularly true of older cards that you haven’t used for a while. Obviously, the longer your credit history, the better for a credit score, but when you don’t use a card for a while, the credit card issuer often stops bothering to update that particular file with the credit bureaus. This means that although the card appears on the file it isn’t given the same degree of importance as your more recent activity. Your older cards can help you out – if you charge a small amount to an old card which you pay off in full when the bill arrives, then that card will come up on your active accounts and of course its behavior will be perfect, thereby helping to raise your credit score.

Bad Credit and the Cell Phone Search

One thing I like to tell people is that there are ways to do just about anything, even if you have bad credit. It’s harder, but possible. For instance, even with bad credit, you can get a cell phone. Some suggestions:

1) The most obvious solution is to get a prepaid cell phone. There are lots out there, everything from Tracfone to AT&T’s “Boost Mobile.” The idea is that you pay ahead of time for the calls you’ll be making. Consequently, no credit check is ever done.

2) Sprint offers a “Spending Limit” plan. Usually this limit is about $125. You don’t have to sign a long term contract and your credit history won’t keep you from signing up. But no more than $125 credit is ever extended to you for services that you use. After you pass the $125, service is cut off until you pay your bill back down.

3) If you really want a contract, many cell phone companies will let you sign up as long as you put down a deposit in advance. But be forewarned: this could be several hundred and even as high as $1,000.

Alternatives to Payday Loans

While some people might find it necessary to take out a payday loan, we need not remind you of the steep interest rates you’re agreeing to. If a payday loan seems impossible for you, here are some alternatives:

Ask your creditor if they’ll extend your due date. You’ll be surprised at how many will. Some won’t even charge you a due date, if you ask first.

Ask for overtime. True, this is no miracle solution, but many employers will give you a few hours’ overtime if you ask.

Ask your boss for a payday advance. This accomplishes the same thing as a traditional payday loan, but it won’t cost you the excessive interest rates.

Pawn or sell things you don’t need. You can take care of this at the local pawnshop or on Internet sites such as eBay or Craigslist. Or have a yard sale one weekend to sell many items at once.
Adjust your tax withholding

Adjust your tax withholding. If you’re willing to take a smaller tax refund at tax time, you can bring in a few more dollars by simply adjusting the amount withheld from your pay check. Visit the IRS website for more information.

More Alternatives to Payday Loans

We discussed previously some ways of getting a quick infusion of a small amount of cash without taking out a payday loan. Here are a few more suggestions.

1. Ask for cash from a hardship organization. Many local organizations will help with rent, which will have the same effect as getting that amount of cash for that month. Others will actually loan you some money at a low interest rate. Contact the Salvation Army for information about local organizations.

2. Request a small loan from the bank. Many people qualify for a small personal loan if they have a steady income. Although the economy is struggling, banks are being encouraged now to extend more loans to people than they were a few months ago.

3. Borrow money from a family member or friend. This is not the best way of getting money, but consider the alternative. If your only other choice is getting money from a place which will charge huge interest rates, then maybe a loved one, who won’t charge you interest, is the better of two evils.

4. Ask for consumer credit counseling. A legitimate counselor is usually free and can help you lower monthly payments to a level you can better manage.