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3 Practical Ways to Rebuild Your Credit

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If you have a lot of credit card debt, you aren’t alone. Credit cards are particularly alluring for young Americans, and when you’re offered a promising credit line, it can be difficult to resist running up your credit card. The problem is that when your debt gets out of control, it can feel almost impossible to pay down those credit cards in a timely manner. Right now, it’s estimated that Americans collectively owe about $1 trillion in credit card debt alone. This isn’t even considering the other debts that they owe relating to student loans and medical bills, among other things.

The problem is that once your funds are in order and you’re reading to begin rebuilding credit, you may have limited options. It’s a bit of a vicious cycle. If your credit score is too low, you may not be approved for a lot of loans and credit lines that you would begin paying back in order to rebuild your credit. Fortunately, there are everyday options that can help you as you rebuild your credit and start fresh.

1. Appliance Financing

It can be incredibly difficult to be approved for many different financing options as you attempt to explore rebuilding credit. However, one industry that often offers bad credit financing is the appliance industry.

We all need appliances, right? But we often aren’t prepared to pay for them in full at once. Rarely are we able to put aside money in anticipation of replacing our appliances. More often, these appliances simply break and we need to rush to replace them. It’s not like most of us can do without a refrigerator for the long term. With that in mind, you may want to consider options like rebuilding credit through customer financing for appliances. Typically, appliances like ovens, stoves, refrigerators, dishwashers, and washing machines can cost hundreds to thousands of dollars. Furthermore, it’s often a better idea to invest in more high quality appliances rather than buying something used or low quality because you need it to last for the long term. Financing your appliances allows you to not only get the appliances that you want and need but rebuild your credit as you make regular payments for something that you would have to buy anyway.

2. Engagement Ring Financing

Engagement rings are exciting investments. They represent the beginning of a new life with your partner, after all. But it can be difficult to decide whether or not you should throw a lot of money at the ideal engagement ring, or settle for something lackluster. Obviously, you’ll want the ring you propose with to make a great impression. Furthermore, there are cultural expectations regarding engagement rings and how much they cost; you may have heard of the unspoken rule that an engagement ring should cost as much as one month’s salary for the buyer.

Fortunately, there are plenty of options available for those that would like to finance their engagement rings. This is a way for you to explore rebuilding credit while buying the ring that you really want to give someone. You should still be wise when financing an engagement ring. But nonetheless, it’s important for you to get the ring that you know your partner will love, rather than settling for a low quality engagement ring.

3. Furniture Financing

Buying furniture is a bit more fun than buying appliances. Yes, there is a certain degree of necessity to furniture, just as there is with appliances. But furniture is also an important part of how we decorate our homes, which is probably why it is so expensive.

But you don’t need to buy worn, used furniture. You can actually finance your furniture, paying it off over months or even years. Make your payments on a regular basis, and you can invest in the ideal furniture set while rebuilding your credit.

You don’t have to accept a low credit score and all the limitations that come with it. By exploring practical methods for rebuilding your credit, you can get what you need on several different levels.