Having poor credit diminishes one’s ability to procure a loan and also renting an apartment or landing a job etc. People with poor credit have low credit scores. A credit score is a number that lenders (banks and credit cards etc.) use to identify the risk element of lending money to you. The standard credit score is called FICO score, named after the Fair Issacs Corporation which created this.
The obvious solution to having poor credit is to improve your credit score. This automatically qualifies you to apply for a wide variety of loans. Improving one’s credit score, albeit being the optimal solution, takes time. In the meantime, those with poor credit can seek loans from:
In the long run, it’s advised to build one’s credit to reach an acceptable score. To do that, always ensure that your bills are paid in time. Revolving debt like credit cards have an higher impact on your credit rating, always have a clean balance on your credit cards. However poor your credit score is, it can be fixed by taking conscious decisions regarding your finance.