Bad credit can have many negative impacts on your life. But, having bad credit can also open your eyes to some pretty big problems, and knowing you have them can be a first step toward getting back on track. No one will congratulate you on your poor credit and the decisions that got you there; luckily, we can give you some pointers to start you toward congratulation-worthy credit repair.

When you have bad credit, it can affect your life in some unexpected ways. Your low credit score can hurt more than your ability to shop with a credit card. Bad credit can mean higher insurance costs, security deposits on utility bills, and trouble getting a cell phone, a car, an apartment or house, or even a job. Not to mention the potential strain all those things can put on your personal relationships.

Going Up

managing your creditWhen you are in a bad credit situation, things can seem bleak, but there are some things you can look at as “perks.” The first of those is that you may have trouble getting further into debt right now. And once you are on the road to credit recovery, there can be ways to incur calculated debts, such as an auto loan, which can begin to improve your credit. You may think there’s no way you can get a loan with your credit situation, but, there are more options available than you may realize; if you know where to look.

Knowing where to look for the right kind of auto loan is something Drivers Lane specializes in. We work with a dedicated network of special finance dealers, who have subprime lending networks available to help people in many types of credit despair.

Learning along the Way

One of the best pieces of financial advice to learn is to know your credit score and what is on your credit reports. Because getting a credit report should be the first step in applying for an auto loan, this is the second perk of bad credit. You can monitor your situation and hopefully avoid making some of the same mistakes that sunk your credit to begin with. A good tip: monitor your credit throughout the year by pulling a credit report every four months.

Don’t worry about this impacting your credit score, you are allowed to get one free credit report per 12 months from each of the national credit bureaus—Experian, TransUnion, and Equifax. The best way to do this is by visiting This will give you a chance to see what is impacting your credit, and fix any mistakes you find, such as up-to-date and accurate information, or identity theft. Seeing your credit report can also remind you to live within your means; you’ll be able to see your credit history, and know the impacts of those old, unpaid bills.

Creating Good Habits

Rebuilding your credit will take hard work and determination. Now that you know some of the steps you can take, it is important to take action in the right ways. From this point forward, if you pay your bills, on time and in full, your credit score will begin to climb. This can be a slow process and you will need to begin using debt properly to show your creditworthiness. Paying off old debts, credit cards, and loans will help, but if you stop using credit altogether after this, your credit rating will not improve.

Your credit score is based upon several factors which are found with-in your credit report:

  • Payment History – Your repayment (or not) of past debts.
  • Amounts Owed – Your credit utilization—the percentage of your available credit you are using.
  • Length of Credit History – How long you’ve had accounts, and when you have used them.
  • Credit Mix – Your combination of credit cards, retail accounts and loans.
  • New Credit – This show how and when you shop for credit.

Based on this, you can see the importance of obtaining new credit if you are trying to improve your score. It is also important to keep some of your old lines of credit open, and use them periodically and responsibly to continue to show a length of credit.

The Bottom Line

Though the bad credit itself is not good for you, it can bring to light some things you may not have realized. So, if you are ready to take steps toward credit recovery, and you need a car, Drivers Lane wants to help. We can point you toward a special finance dealer in your area, just take the first step and fill out our auto loan request form today.