This question is not how to build credit quickly, although those strategies will be used simultaneously to prevent having to use the answers to this question again.
As a new graduate, I have had a hard time managing finances during my time in school, with loans, and obviously funds were very limited. I expect to receive a decent salary after graduating and need to make a few purchases (such as a car to be able to work).
QUESTION: If a person has no or bad credit (specify differences that apply to your answer), but they have a decent salary and some tangible cash, how can they mitigate the ramifications of their credit?
Obviously, credit is a measure of trustworthiness and responsibility. it is not necessarily a representation of how much money you have at a given moment. However, money does talk. At least to me. There are some obvious answers such as "just deal with higher percentages with your extra cash", but in some cases I may not be approved at all because of my history. I am looking at creative, borderline genius, ways to leverage cash or salary for credit.
Here are some sample answers I was looking for. I know there is no free lunch. I'm asking the question, so obviously some of these suggestions may be wrong or downright fantastical.
- Pay debt collector directly if debts have gone to collection. Try to negotiate removal from report.
- Consider financing through car dealer vs. bank
- Save as much as absolutely possible up until the time of purchase to pay down the principal
- For loans under $15,000-$20,000 (correct?), raise more cssh for the down payment and then juggle the card paymemts on several credit cards, paying them off sequentially and in time. This may actually stimulate credit growth by using a larger share of credit allotmemt if maintained at a reasonable level and responsibilbly paid off. Yes, I know the bank will be waiting for me to screw up and that is how they make their billions.
Again, these ideas are pedestrian and was hoping there would be some clever/novel suggestions that mitigate bad credit, in the short term, leveraging cash.