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What To Do About Bad Credit

Though it may feel like it, bad credit scores aren’t the end of your financial world. Learn the steps that led you to where you are and the steps you need to take to turn your bad scores into good ones.

What You Need to Know About Improving Bad Credit

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Q&A With an Expert: Understanding the Credit Repair Process
Frequently Asked Questions
  • Can you buy a house with bad credit?

    Yes, buying a home is possible when you have bad credit. However, you’ll likely be limited to certain mortgage programs because of your credit scores. A popular mortgage for people with low credit scores is an FHA mortgage. The program accepts applicants with scores as low as 500, but if your score is between 500 and 579, you’ll need a 10% down payment.

  • What is a bad credit score?

    The exact definition of a bad credit score can vary by the scoring model but, in most cases, a score lower than 580 is considered bad credit. A variety of factors can lead to a bad score, including late payments, not making payments at all, and having your account go to collections.

  • How do you get a loan with bad credit?

    You’ll need to shop around and get quotes from several lenders to see what your options are. Expect to pay higher interest rates than someone with good credit scores, as lenders see your bad credit as a risk.

  • Can you get a car with bad credit?

    Yes, you can probably find a lender that can provide an auto loan for your bad credit. When you start your search, make sure you get pre-approvals from several different lenders so you can compare rates. An option for lowering your interest rate may be to provide a substantial down payment.

  • Is it possible to get an apartment with bad credit?

    You can get an apartment even with bad credit, but you’ll need to be smart as you search for a place to live. Ways to increase your chances of getting an apartment include finding rentals without credit checks and prove that you have steady and reliable income.

  • What credit card can you get with bad credit?

    In most cases, consumers with bad credit will have to search for secured credit cards. These cards typically require a down payment that serves as your credit limit and a backup just in case you can’t pay your bill. A good secured credit card is the Discover it Secured, which provides rewards and waives your first late fee.

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