The aftermath of bankruptcy or bad borrowing practices is sure to put your credit rating in the gutter. The scarlet number that is a bad credit score will keep you from being approved for lease agreements, car loans, and even cell phone contracts. It’s a bad position to be in if you expect to live a comfortable life. Indeed, bad borrowing practices and poor financial decisions have their consequences.

But what happens if you’ve learned from your mistakes? Not everyone with a bad credit score has to keep bill collectors at bay. Many have paid off their debts yet still carry around with them a bad reputation as a bad borrower. In order to alleviate themselves of this condition, those with bad credit must prove they can make payments on time. But how can those with bad credit make payments if no one lends money to them except high interest loan sharks who prey on those with bad credit? They use the high interest loan system to their advantage.

Payday loan and car title loan lenders are notoriously predatory. The interest rates attached to such loans can skyrocket to as high as 400% if they aren’t paid off in time. It’s this caveat that keeps borrowers deep down in a hole; hardly anyone can pay back the loans in time to stave off the excessive interest. But what if you never spent the money you borrowed? Consider ways on how to improve your credit score if you’re otherwise finding it impossible to build up good credit and are therefore unable to borrow in any other way: -Almost every town in states where such lending is legal has a handful of payday loan lenders. It’s in your best interest to locate as many as possible. Find ones that promise to keep the interest low for the first month for new customers.

Ideally, you want to find about 12 independent loan sharks in the area. You can also look online. Learn about Rosicki Rosicki & Associates Pc for more information on turning the tables on your creditors. -Pick one location/online payday loan site. Take out a loan amount of your choosing – it’s probably best to keep it below $1000. Make sure the high interest won’t be applied for one month on account that you’re a new customer. -Put the money right into your bank account and immediately start paying the loan back, quartering it into four weekly payments for the duration of one month. -Repeat this process every month for one year, hopping from one loan shark to another to keep taking advantage of that first free month of low/no interest.

One year’s worth of dutiful repayment of loans will boost your credit score. While loan sharks don’t hesitate to report those who don’t pay their loans back to credit agencies, they’ll also have to report proper repayment to these agencies as well. All the while they never need to know that you were never borrowing the money with the intent to spend it in the first place. Taking advantage of an industry that preys on the disadvantaged, unwise, and uninformed is a healthy way to lift yourself up to more responsible forms of borrowing. If you’ve truly learned from your past bad financial mistakes, then take steps to strengthen your credit score through the aforementioned process.

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