What To Do If You Have Bad Credit

If you’re struggling with bad credit and need money quickly, you still have options available. Improving your credit score may seem challenging, but it’s entirely possible with the right approach. With consistent effort, you can begin to see real results—even within a few months.

Below, you’ll find proven strategies to fix bad credit and actionable steps to help you raise your credit score over time.

How to Improve Bad Credit: 4 Proven Strategies

Improving your credit doesn’t require dozens of complicated steps. Instead, focusing on a few powerful strategies can make the biggest difference. Here are four ways to start turning your credit score around.

1. Keep Your Credit Utilization Low

One of the most important factors in your credit score is credit utilization—the amount of credit you’re using compared to your total credit limit. Since utilization makes up nearly 30% of your score, keeping it low is essential.

For example, if your credit limit is $1,000, you’ll want to keep your balance below $300. Making multiple small payments throughout the month (instead of waiting for one large payment) can help keep your utilization low and boost your score. This is one of the fastest ways to raise your credit score.

2. Review Your Credit Report for Errors

You can’t improve bad credit if you don’t know what’s on your report. Request your free annual credit report and carefully check for errors, such as incorrect late payments or accounts that don’t belong to you. Disputing inaccuracies can lead to a quick increase in your score once corrections are made. Regularly reviewing your credit report is a crucial step in any credit repair plan.

3. Make Payments on Time—Every Time

Payment history is the single biggest factor in your credit score. Even one late payment can stay on your report for up to seven years. Setting up autopay or reminders can help you stay consistent. If you do miss a payment, contact your creditor and ask if they’re willing to stop reporting the late payment—sometimes they will if you have a good history with them. Paying on time consistently is one of the most reliable ways to fix bad credit.

4. Open Credit-Building Accounts

You can’t raise your score without active accounts reporting to the credit bureaus. Options like secured credit cards, credit-builder loans, or becoming an authorized user on a responsible person’s credit card can help diversify your credit mix. Keep these accounts active, pay them on time, and over time, you’ll see steady improvements. Building a positive credit history is key to long-term credit repair.

How Long Does It Take to Repair Bad Credit?

Credit repair doesn’t happen overnight. Most people begin to see noticeable improvements in their credit score within 3–6 months of consistent effort. The exact timeline depends on factors like your starting score, how much debt you’re carrying, and whether your report contains errors that need correction.

What If You Need a Loan While Fixing Your Credit?

While working to raise your credit score, you might still need access to cash. Traditional bank loans can be difficult to secure with bad credit, but title loans allow you to borrow money using your vehicle as collateral.

At Southwest Title Loans, we work with borrowers who have less-than-perfect credit, helping you get the funds you need without the long waiting period of traditional lenders.

What Is a Title Loan?

A title loan is a short-term loan that uses your vehicle as collateral. If you own your car, truck, or motorcycle outright, you can borrow money against its value while keeping possession of your vehicle. Title loans are an option for those who need loans for bad credit, as approval is based more on your vehicle’s value than your credit score.

The Step-by-Step Application Process

Here’s how a title loan works:

1. Fill out the online inquiry form to get started.
2. Receive a call from a loan representative with details, and set up a meeting at one of the store locations to complete the process.
3. When you arrive, provide a valid state-issued ID, your vehicle title, and proof of income to the agent.
4. During the visit, the lender will also evaluate your vehicle and determine your loan amount.
5. Then, if you are approved, sign the loan agreement, and the lender places a lien on your vehicle.
6. You receive cash quickly, often the same day.
7. Once you repay the loan in full, the lien is removed and your title is returned.

This process allows borrowers to get fast title loans, even if they have bad credit. You can continue driving your vehicle while repaying the loan, making it a practical short-term solution.

Title Loan Requirements

To qualify for a title loan, you typically need:

• A clear vehicle title in your name (no existing liens)
• Valid government-issued ID (driver’s license or passport)
• Proof of income or employment
• Vehicle inspection (for value assessment)

Frequently Asked Questions About Bad Credit Loans

Can I get a title loan with bad credit?
Yes! Title loans are designed for people with poor credit because the loan is secured by your vehicle rather than your credit score. Approval depends on your vehicle’s value and condition.

How much can I borrow with a bad credit title loan?
Loan amounts vary based on the value of your vehicle. Typically, you can borrow a percentage of your car’s appraised value, giving you quick access to cash even if your credit is low.

Will a title loan hurt my credit?
Most title loans don’t require a credit check, so they won’t directly affect your credit score. However, missing payments or defaulting can lead to repossession of your vehicle, which has serious financial consequences.

How quickly can I get cash from a bad credit title loan?
One of the benefits of title loans is speed. Once approved, you can often receive cash the same day, making it a fast solution for financial emergencies.

Do I still own my car during the loan?
Yes. You can continue driving your vehicle while repaying the loan. The lender holds a lien on your title until the loan is fully repaid.

What happens if I can’t repay a title loan?
If the loan is not repaid according to the terms, the lender may repossess your vehicle. It’s important to borrow only what you can afford to repay.

Start Working on Your Bad Credit Today

Fixing bad credit is possible with patience, consistency, and the right strategies. By lowering your credit utilization, making payments on time, reviewing your report for errors, and opening credit-building accounts, you can steadily raise your score.   

And if you need money in the meantime, Southwest Title Loans is here to help. Need cash while working on your credit? Apply online today, and you could get approved for a title loan—even with bad credit. Don’t wait—start now and get the financial relief you need.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.