Tired of having a cash advance online be your only access to extra money? Cleaning up your credit report is a good way to solve that problem. Unfortunately, if your credit score has already been damaged due to poor money management, it will be a slow and steady process which may take up to seven years.
The commitment may be there, but the need for good credit sooner than later can often disrupt the plan. Some people end up using short-term loans along the way. When these loans are paid off on time and do not take money away from other scheduled payments, all is good, but when the fast payoff comes and there is no extra money to pay this additional bill, the plan will take a sharp detour in the wrong direction.
A cash advance is a monetary support, not a solution.
Another wrong move that some people make is to start cancelling credit cards. Too many credit cards? An obvious answer would be to cut some cards up, but doing so will not help your credit. It all has to do with the utilization rate used by the credit bureaus to calculate the score. If you do feel like you need to cancel a credit card, then you will want to do it in a way which will not hurt your score any more than necessary.
- Closing multiple cards? Do one at a time! Target the card with the highest APR or charges an annual fee.
- Before making any attempts to close the chosen card, pay off the balance. Keeping a balance on a closed card is hurting your credit score that much more.
- Whether you call to cancel the card or do it over the Internet, follow up with a letter of confirmation to protect you if it reopens without your consent. Keep a copy for your records.
- Don’t just throw it in the trash. Dispose of the card properly by cutting it up into many pieces and place the pieces in multiple trash cans.
- Watch what happens to your credit before you begin to close another account. If your score does drop, give it a chance to rebound before you close another one.
Sometimes what you think is going to help will backfire on your progress. Closed and unused accounts will typically hurt your credit more than keeping them open and carrying a balance. As long as you can control how much of the available balance you spend, this is a better way to improve your credit score. Just paying down balances will help you make significant improvements to your score. This process may take some time as many folks in this position live paycheck to paycheck. A cash advance could help with on-time payments but when they only cause additional problems to the budget, they should be avoided all together.
Spotya! Online Cash Advances is a responsible lender for short-term cash when the next paycheck is around the bend. Payment for this money is due in a few short weeks, the loan plus fees in full. Create a payment plan for yourself before you take the money out in order to help protect your future financial situation.
