You Deserve a Second Chance with Your Finances

We all know how important it is to keep track of our finances, as well as our credit scores. Of course, none of us can predict the future, and it is impossible to know when an emergency such as medical issues or even an automobile accident could find its way into our lives. 

With such unpredictability facing us in our lives, we may not be able to plan ahead financially exactly how we want to. Unfortunately, financial accidents like not being able to pay a bill on time can have a negative effect on our lives, usually reflected in our credit scores. 

A bad credit score can make it very difficult to qualify for a credit card, a line of credit for a store, or getting a loan that we could use to get ahead in life for important purposes, like a down payment on a home or an automobile. 

Does this mean that no options exist for the times when we need money the most, even with bad credit? 

Thankfully, no, this isn’t always the case. Many online financial platforms, like LetMeBank, exist to help people find the best possible options for them, no matter what financial situations they may be facing in their lives. 

What a Bad Credit Score Can Affect

A bad credit score can, unfortunately, stop people from getting the same financial opportunities as their good credit counterparts. These can include things like: 

  • Opening a bank account: Opening a bank account can, a good deal of the time, be influenced by credit scores. Thanks to systems such as ChexSystems, if you have a bad credit score or your name has been flagged for things like nonpayment in the past, you might be turned down by certain banks when trying to open a new checking account. 
  • Getting a loan: In life, we sometimes need loans to do things like put a down purchase on a new car or a home. A bad credit score can, unfortunately, make this quite the tall order, as many financial institutions won’t work with people who have faced difficult financial circumstances in their lives which have negatively impacted their credit scores. 
  • Obtaining a credit card: A credit card can really come in handy when you need to make a purchase, but don’t necessarily have the cash in your account to use your debit card. Credit cards make it simple to make a purchase and pay that purchase off later in increments. This especially comes in handy with larger purchases made with credit cards with higher spending limits. Of course, if you have a bad credit score, obtaining a credit card can become quite tricky. 

What Options Do You Have With Bad Credit? 

While some of these things can be made more difficult if you don’t have a sparkling credit score, that doesn’t mean that they are flat-out impossible. Many financial companies exist who are willing to work with people who have bad credit scores, and these companies understand that sometimes, life just happens. 

Here are some options to consider if you have a bad credit score.

  • Second chance checking accounts

These are checking accounts that don’t take credit scores into account, and don’t use ChexSystems to decide whether or not to grant you a checking account. While second chance checking accounts can have stricter limitations placed on them than traditional checking accounts, you will still have many of the usual benefits of a checking account, such as storing your money, checking your balance, and being provided a debit card linked to your account. 

  • Installment loans

While getting a loan can be a bit more difficult with a bad credit score, it is not impossible. Installment loans allow you to get the money you need while being able to pay it off in monthly installments, as the name implies. 

With bad credit loans, you might have to deal with some drawbacks, such as higher interest rates and other fees, however, so make sure you do your research thoroughly before deciding on a lending company for bad credit loans. 

  • Secured credit cards

Getting a line of credit or a credit card the traditional way can also be hard when you have bad credit, but again, not impossible. A secured credit card is the best credit option for people with bad credit, allowing them to put a small deposit on a credit account that then becomes their credit limit. 

They can use this credit card as they would a traditional credit card, and pay it off monthly. Their payments will be reported to the credit bureaus, allowing them to focus on rebuilding their credit one payment at a time. 

If you have bad credit, it may seem impossible to get your hands on the money you need, when you need it. As you can see, however, you have options, and being smart and finding the best options for you can be a great way to not only get the money you need, but also begin working on rebuilding your credit score one piece at a time.

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