Investments and bad credit

Dave — Sat, 15 Aug 2009 10:53:14 +0000

If you have bad credit, getting a car loan can be difficult – as we have already discussed. For many consumers, finding themselves in this position can make other financial strategies like saving or even investing your money a bit of a pipe dream. However without taking some kind of action, no matter how small, it is unlikely that anyone will be able to change their circumstances. Investments will not affect your credit score at all but if you are able to derive a small portion of your income from your investments, you might be able to put this to work paying down credit cards or loans and get ahead this way. But at the end of the day, you need to look realistically at how to get the best return for your money. If you have a car loan at 12% interest and you think you can only make 9% back from shares, it would be foolish to divert money away from your loan repayments.

If, however, you have an investment opportunity that allows you to reliably make back more than you would lose in interest paid on your loan, it might be worth reducing your loan repayments to the minimum. If this all sounds too complicated, don’t panic! There are some good software programs around that can help you to plan all of this out. For example, check out this review of checklist investor. This software lets you comprehensively plan and track your investments to give you a clear picture of where to put your money.

Whatever you do, try to minimize your every day living expenses by cutting down on unnecessary items like takeaway, expensive cable, etc. All the little things add up to a fair chunk of money that you can put back to work paying debts to improve your credit rating, or investing so that you will be able to get ahead in future!

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Investments and bad credit