Has your poor credit score been holding you back from getting a food truck loan? These days, many people looking to enter the food truck industry have had tough financial challenges that have killed their credit score. Thankfully, bad credit isn’t forever.
Why Repair Your Credit Score?
Credit repair is critical to saving money on insurance, loans, and credit cards, but that’s not the only reason to repair your credit score. A better credit score opens up new employment opportunities, even promotions and raises with your current employer. If you dream of starting your own food truck business or just want the security of knowing you can borrow money when you want to, you should repair your credit sooner rather than later.
You can keep your interest rates lower by working to keep your credit score as high as possible. Doing this can reduce monthly payments, which will assist you in paying off any outstanding debts faster. The key to paid off credit is to find a great offer and a competitive rate so that you can pay off your debt and get a better credit score.
8 Tips To Use To Repair Your Poor Credit Score
Use these tips to learn how to repair your credit score once and for all.
General Credit Tips
- Beware Of Credit Scams. Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. This information can stay on your record for about seven years. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
- Pay Your Bills. You must pay your bills consistently if you want to repair your credit. More precisely, you must begin paying your bills fully and on time. You will notice an improvement in your credit score pretty quickly after paying off some past debts.
- Move To A Credit Union. Joining a credit union may be a way to boost your credit score when you are having a hard time getting credit. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
- Avoid Filing Bankruptcy. If at all possible, avoid filing bankruptcy. A Chapter 7 bankruptcy remains on your credit report for 10 years after the date filed. A Chapter 13 bankruptcy remains on your credit report for seven years after the date filed. While it may sound appealing to clear out your debt but in the long run you’re just hurting yourself. It may be impossible for you to get a loan or credit card in the future if you file for bankruptcy.
Credit Card Tips
- Reach Out To Your Creditors. When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. Doing so will help you to ensure that you do not go further into debt and make your credit worse. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
- Get Your Credit Limit Reduced. Contact the credit card company and ask to get your card limit lowered. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
- Find All Of Your Negative Credit Items. Check any negative items on your reports carefully when you begin fixing your credit. Even if a charge held against you is legitimate, any problems with its details, like the date or the amount owed, could make the entire entry invalid and eligible for removal.
- Look For Errors. Carefully check all charges on your monthly credit card statement for errors. if you find any, then you need to get in touch with the company right away so this does not become a blemish on your credit record.
The Bottom Line
If you want to improve your poor credit score, use these tips to change your score and change your life. This advice can make all the difference between having a bad or good credit score.
Do you have any additional tips to help current and prospective food truck vendors clean up their credit score? Share your thoughts on this topic in the comment section or social media. Facebook | Twitter
On Mobile Cuisine we try to provide accurate information on personal finance for food truck vendors, but it may not apply directly to your individual situation. We are not financial advisors and we recommend you consult with a financial professional before making any serious financial decisions.