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.