The easiest way to fix your credit is to pay your bills on time.
If you’re late paying your car loan, then automobile finance companies will want to charge you more interest or not work with you at all. If you’re late paying your rent, property management companies (those that run credit checks) will likely want a larger deposit or not work with you at all.
Sometimes people get into financial trouble, like you. And want to climb back out. Let’s use the car loan example. Let’s say you need a car and you’re going to finance it. And let’s say the best offer you get on a loan is 24% (legal max is 24.99%). They’re charging you such high interest because of the risk of working with you based on your history. So, here’s what you do. Take the loan. Pay on it diligently for 13 months. Then re-negotiate the terms to get a lower interest rate (i.e. apply for a new loan). You’ll have established a strong history with that particular lender and they will be likely to come down on the rate substantially. And your overall credit history improves.
I have a rental property that I lease out. I run a credit check on potential tenants. Of course, I want the best credit report back possible, but I will work with someone with a few dings in their history if they have never been late paying rent before. The same holds true elsewhere.
—
Remember, when you get a loan (or any other kind of credit line), you’re trading on your trustworthiness to pay it back. Finance companies assess risk based on the likelihood that they’ll get their money (and profit) in return. They hedge that risk by charging you higher interest rates, requiring certain stipulations, or simply not working with you.
You can fix this. It’s not as hard as you might think. Pay your rent and your car note on time every time.
And please, never ever get a title loan on your car (”...interest rates typically range from 36% to as high as 651.79% (APR)”).