‘I’m not getting approved for any new credit cards or low interest loans’: I need help improving my credit score and managing my debt. What are my options?

Hi Money Minder,

My partner and I bring in about $120k a year together. I’ve been working hard to pay off my credit card debt, and I’m almost through it. But man, it really did a number on my credit score. Even though I paid off another personal loan, my credit is still stuck in the mid 600s.

I’ve been trying to apply for new credit cards or low interest loans, but I keep getting rejected. My old credit cards got closed when a debt relief company worked out a settlement with them. Right now, my top priority is to find a way to lower my interest rate on my car loan. My old car kicked the bucket, and I had no choice but to get a new one, even though my finances aren’t ideal.

I’ve been searching high and low for a preapproval without hurting my credit score, but nothing’s come through. I was really hoping to find some pro bono or affordable advice on how to turn things around and manage my money better.

Thanks a ton for any help you can offer!

Retired and Happy

Response from THE MONEY MINDER:
Hello There,

I’m sorry to hear about the challenges you’ve been facing with your finances, and I appreciate you reaching out for assistance. It sounds like you’ve been working diligently to pay off your credit card debt and other loans, which is a significant step in the right direction. Your commitment to improving your financial situation is commendable.

One practical approach to improving your credit score and managing your finances more effectively is to create a detailed budget. By tracking your income and expenses, you can identify areas where you can make adjustments to free up more funds for debt repayment. Additionally, consider reaching out to a non-profit credit counseling agency for personalized guidance on improving your credit score and managing your debts.

In terms of your car loan, it might be helpful to contact your current lender to discuss the possibility of refinancing at a lower interest rate. They may be able to work with you to find a solution that better fits your financial situation. Keep in mind that refinancing will likely require a hard credit inquiry, but it could potentially save you money in the long run by reducing your monthly payments.

I recommend exploring all available resources for financial education and assistance in your community. Many organizations offer free or low-cost financial counseling services that can provide you with valuable insights and advice on managing your finances more effectively.

All the best from THE MONEY MINDER.