A felony conviction can come with a lot of consequences, and most importantly it will affect your credit score. You may not be able to get loans or even open up a bank account without good credit. So how do you go about rebuilding your credit? There are many ways to rebuild your credit and it.
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What is a credit score and how does it work?
Your credit score is a number that represents your creditworthiness. It is based on your credit history, which is a record of your borrowing and repayment activity. The higher your score, the more likely you are to get approved for loans and credit cards. The lower your score, the more likely you are to be denied loans and credit cards.
As of 2018, the average credit score in the United States is 695. This score is based on a 300-850 scale, with 850 being the best score possible. A credit score of 695 is considered good, but there are still ways to improve it.
Tips for rebuilding credit score after a felony
If you have a felony conviction, rebuilding your credit can seem like a daunting task. But don’t worry, there are plenty of ways to improve your credit score. Here are a few tips to get started:
Get a copy of your credit report
This is the best place to start when trying to rebuild your credit. Make sure to check for any errors and dispute them immediately.
You can get a copy of your credit report for free at AnnualCreditReport.com. This is the official website where you can get a free credit report from each of the three credit reporting agencies: Experian, Equifax, and TransUnion.
Start paying your bills on time
This is one of the most important things you can do to improve your credit score.
Use a credit monitoring service
This can help you keep track of your credit score and report any changes to the credit bureau. Some of the most popular credit monitoring services include:
- Credit Karma: https://www.creditkarma.com/
- Credit Sesame: https://www.creditsesame.com/
- Credit.com: https://www.credit.com/
Get a secured credit card
A secured credit card is a credit card that is backed by a deposit you make with the credit card issuer. This deposit acts as your credit limit, and the card issuer will usually charge a lower interest rate than they would for a regular credit card. This is a great way to rebuild your credit if you don’t have one already.
Apply for a small loan
Even if you can pay off the entire loan amount, it can help improve your credit score to have a small loan on your credit report. Just be sure to make all of your payments on time. This can help show lenders that you’re responsible for your credit.
By following these tips, you can start rebuilding your credit score and start repairing your financial future.
How to get a loan with a low credit score
If you have a low credit score, you may not be able to get a loan from a bank or credit union. But there are other options available. Here are a few places you can look for a loan:
Online lenders
Many online lenders cater to people with bad credit. These loans usually have higher interest rates than loans from banks or credit unions, but they can still be a good option if you need money fast.
- Equity Now: https://www.equitynow.com/
- Rocket Loans: https://www.rocketloans.com/
Peer-to-peer lending networks
Peer-to-peer lending networks connect borrowers with investors who are willing to fund their loans. These loans usually have lower interest rates than loans from online lenders, but they may take longer to get approved.
- AvantCredit: https://www.avant.com/
- Lending Club: https://www.lendingclub.com/
- Prosper: https://www.prosper.com/
Credit unions
Credit unions are a great option for people with bad credit. They usually have lower interest rates than banks and online lenders, and they’re more willing to work with people with bad credit.
To find a credit union near you, check out the Credit Union Locator on the National Credit Union Administration website.
The best credit unions for people with bad credit are:
- Navy Federal Credit Union: https://www.navyfederal.org/
- Pentagon Federal Credit Union: https://www.penfed.org/
- First National Bank: https://www.fnb-online.com/
- Andrews Federal Credit Union: https://www.andrewsfcu.org/
Conclusion
After a felony, the criminal must repair their credit score. There are many ways, which include paying bills on time with the best bank for rebuilding your credit score and getting small loans to improve your credit rating. By understanding how your credit score works, you can improve it and live a better life.
