Having a low credit score doesn’t necessarily mean you can’t access credit. However, interest rates can be very high if lenders regard you as a high risk borrower. Here are three tips that can help you get a car loan or other financing with a reasonable rate of interest, even if your credit score isn’t as high as it should be.
1. Choose Secured Over Unsecured Credit
Loans that are backed up by an asset, such as mortgages and car loans, often have much lower interest rates than unsecured personal loans. Therefore, refinancing your car or even remortgaging your home can be a good way to get your hands on the cash you need. Of course, you’ll need to remember to keep up with the loan repayments to protect your asset, but the advantage is that the overall amount you end up repaying could be much lower when you secure your loan against an asset that you own.
2. Use a Co-Signer
The banks may not believe that you will repay your debts, but you probably have family members who are willing to vouch for you. Getting a trusted relative or friend to co-sign on your loan can persuade lenders to let you access credit, even if your credit history is less than perfect. The best co-signers are those who have significant assets of their own, such as an unmortgaged home, as well as a steady income. Remember that your co-signer will be responsible for repaying the loan if you can’t make the payments, so you need to be sure that you have a plan for repaying the loan to avoid leaving them in a bad situation.
3. Improve Your Credit Score
If you don’t need the money immediately, then spending some time improving your credit score can help you to get a loan that isn’t too expensive. The first step is to take a look at your credit history, so you can work out where you have been going wrong so far. To access your credit report, you’ll need to contact one of the national credit reporting bodies: Veda, D&B or Experian. Take the time to read the report and understand how late payments and loan defaults have lowered your score, then take action to repair the damage. One good way to build credit history is to take out a pre-paid credit card and regularly use it to pay for small purchases, such as groceries.
If you run a local gym it can be hard to stay in business, in a market where more and more low-cost gyms are opening up. It can be very stressful if your gym members do not pay their dues. As gym memberships are based on a contract gym owners do have some ways to ensure that gym goers pay up.
Here are some tips to make sure that that your gym members pay up.
Get their contact details
If you find that one of your gym goers is not paying up it can be worth sending a message to the gym goers phone by text message, as well as calling them and sending a letter. This can remind them that they need to come in and change their payment methods or switch to a new gym if they aren’t coming in. Let them know if there will be some consequences of their failure to pay including whether their account is accruing extra fees, whether they will have access to the gym ceased or if the account will be sent to a debt collection agency after a certain period of failing to pay.
In some cases, accounts can become unpaid simply due to people forgetting to update the account to match a new credit card number or another simple reason. By prompting the member they may come in and fix up the account promptly so that you can get those much-needed funds.
Use a debt collection agency
Using a debt collection agency can be a good option if you have a large number of unpaid debts. In return for a fee per account (often a fixed percentage of the funds collected), the agency will pursue the debt. They have additional resources to help locate people and contact them to encourage them to pay. They also have the time and experience to dedicate to chasing down people who owe money while gym owners have a range of other tasks that they need to do more urgently to keep their business running.
If you have a gym with a large number of gym members who are not paying their gym fees it can be a good idea to review your debt collection processes and work out how to try and prompt the gum members to pay their debts themselves. If this does not work then you can use a professional debt collection agency to help collect the debt.