Home Debt Options Available for Those with Poor Credit Histories

Options Available for Those with Poor Credit Histories

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Having a good credit rating is essential if you want to borrow money from many lenders, whether you’re hoping to take out a credit card, general loan or mortgage. A poor one can bring up all sorts of stumbling blocks along the way and seriously damage your chances of owning a home or getting the funding for a new car.

If you’ve not got the greatest credit history there’s no need to start panicking straightaway. There are various options open to help you and ways to get your finances back on track so you can secure that dream home or other amenity.

Make Immediate Improvements

The first thing to do is check your current credit report to see if there are any mistakes or whether you have been a victim of fraud which has badly affected it. Everyone has the legal right to see their own credit report for a cost of just £2, which is more than worth it when something is wrong.

Where mistakes are found you must challenge the credit reference agency to get them fixed. Other tasks such as cancelling all unused credit cards and current applications for credit along with getting on the electoral register will improve your rating.

Use Credit Builder Cards

Prepaid credit builder cards improve your credit score by loaning you a small amount which you agree to pay back over a year. As long as you meet all the repayments (usually only £5 a month) this is recorded on your credit report, although a small fee is incurred by this method.

There are other credit builder cards available which work the same as general credit cards but include a higher interest rate. Ensure you can meet the repayments each month to avoid getting into debt and damaging your credit score even further.

Take Out Bad Credit Loans

There are specific loans designed for those with poor credit histories. It’s likely many high street lenders and banks won’t supply you with a loan when you require one, so turning to bad credit loans from places like Everyday Loans is an ideal solution.

The only requirements are that borrowers are over 18 years of age and in full time employment. Rather than looking only at someone’s credit score, bad credit loans take much more into account to help you borrow the money needed for essential car repairs, credit card payments and many other important purposes. These options should all help you get by with a bad credit history.

8 COMMENTS

  1. The easiest way to re-establish credit is to open secured credit cards. All you need to do is pre-fund a card with cash that sits in the credit card issuers account, then use the card. I recommend opening 2-3 of these and keeping the credit balance always below 35% utilization. This means if the credit limit is $1,000, never have a balance higher the $350. By doing so your score will go up faster.
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  2. My credit is horrible but I was finally able to get a secured card. It has a very small limit but it’s a start. I would like to learn more about Bad Credit Loans. I have never heard of them before and I want to know where and how to apply for them.

    • Well I guess the small limit is a good place to start, and a nice way to ease into the whole thing and start building your rating back. I would advise very strongly in favor doing a lot of research on any of these loans that you are considering though. No matter how much they are talked about and claimed to be great, you just never know and so you want to make sure that you are covered and know what you are getting into. Best of luck, and thanks for sharing.

    • We seem to be in the same situation. Because of some bad choices in my past, I found myself with a really bad credit rating and now I find it almost impossible to get a loan from anywhere. I would also love to learn more about Bad Credit Loans, provided they have them in my part of the world.

  3. My problem is I do not have a credit history at all! I’m afraid I have to start building credit history from scratch. One one hand, it’s good that I get to learn from other people’s mistakes. On the other hand, it’s kinda scary!

    • I actually had a lot of the same issues, and it caused me to make a really stupid mistake. I decided to buy someone else a new TV, and it was around $600, which I realized was a little ridiculous when I shopped for mine later and found 300 was good enough for anyone, and it turns out I never saw the money. I paid it off of course and so I guess I got a good credit score, but I have yet to see any real benefit and I have other things that contribute to it. It was a DUMB mistake by ME, but still, it just to show you to be careful out there.

  4. Pre-paid cards were also on my mind as a great way to help repair credit. I believe it same as secured card, just a different term, There are two people that I know personally who had a major turn around with their credit history by using pre-paid or secured credit cards. It took them about 1 -2 years to re-build their credit history,

    What I am thrilled to come across in this article are the credit builder cards, I would like to see if these cards are different from the the pre-paid cards. This option seems very promising for me as I am trying to rebuild my credit. There are no credit cards on my report but there are a lot of medical bills and student loans. I am looking forward to being debt free

  5. Well I have to be honest I really do not know much about those credit builder cards, but they sound interesting and now I am intrigued. I probably could have used one of those back in the day, but I would like to think that I am okay now. They sound like a good option, and the earlier that you can start to build your credit the better off you are, which I wish someone would have told me aggressively. Thanks for sharing.

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