If you have a history of bad credit, you’ll find it hard to borrow money from banks and high street lenders. This means you might not get approved for a mortgage or be able to take out a car loan, for example. Fortunately, bad credit doesn’t have to last forever. With a sure-fire strategy in place, you can rebuild your credit history and improve your credit rating. To get started, take a look at three things you can do if you have bad credit:
1. Get Debt Advice
Most people get a bad credit history because they’ve failed to manage debt effectively. If you miss repayments on a loan or have been declared bankrupt, for example, it can have a significant impact on your credit score. Poorly managed debt means you’ll be seen as a ‘risky borrower’, which will make other financial institutions less likely to lend to you.
By accessing debt advice, however, you can find a way to minimise your outstanding debts and manage your repayments. Although many people are reluctant to seek help when debt gets out of hand, taking control of your finances is a positive step forward.
2. Access Funds
If you need to access funds, you may still be able to take out a loan, even if you have bad credit. With brokers like New Horizons, for example, you can apply for a loan and receive instant approval, despite a low credit score. When you can search through hundreds of lenders via New Horizons to find the best deal for you, it’s easy to access the credit you need. Furthermore, taking out a loan and making regular repayments could even help to rebuild your credit score.
3. Check Your Credit Report
If you’ve been turned down for a mortgage, car loan or cell phone, you need to know why. Checking your credit score is one of the first things you should do if you suspect you have a low credit score. The information contained on your credit report will tell you why your score is so low and give you the data you need to make positive changes.
In addition to this, you can take action to have your report updated if you think it contains incorrect or out of date information. In some instances, your credit report may show that you’ve missed repayments when you haven’t, for example. By getting these types of errors fixed, you can improve your credit score instantly.
Boosting Your Credit Score
Managing your debts effectively and taking a strategic approach to your finances will help you to increase your credit score. Furthermore, resolving your financial issues and getting back on track will reduce your stress levels and alleviate any financial pressure you’re under.
Although it can feel daunting to address on-going debt problems, taking control of your finances can be a cathartic experience. With the right practical, financial and emotional support, you can overcome bad credit, access the funds you need and successfully manage your money.