Here at Auto Credit Express, we want you “on the road” to better credit. In addition to a bad credit car loan, there are other things that you can do to improve your credit.

Make a budget

Consumer credit counseling, in its simplest form, is planning a budget - which involves looking at your income and controlling how much you spend. Once you have calculated how much of your paycheck needs to go towards basic expenses (food, utilities, rent/house payment) the balance can set aside for the next step in the process.

Prioritize the balance of your debt

Determine the line of credit with the highest interest rate. If you have any additional funds, try and make more than the minimum payment on at least this account. Pay the minimum due on all the others until this account is paid off. Once this is paid off, look for the account with the next-highest rate and do the same.

Keep some money in reserve, but concentrate on paying off your debt

It always makes sense to have an emergency cash fund, but don't put any more money in it than necessary. Savings accounts pay notoriously low interest rates. Keeping your cash in one that pays 5% while your credit card interest is costing you 17% is a losing proposition. Better to use any extra cash to pay off high-interest debts

The Bottom Line

Reestablishing your credit requires a two-pronged attack. Decreasing your debt while establishing a positive payment history with help raise your credit score and put you back “on the road” to better credit.