Two of the questions we are asked most often are: “how will this affect my credit rating” and “will I be able to rebuild”?
Here are some things to consider when trying to understand your why your credit rating is poor along with a few tips on how to improve it.
Do you pay your bills on time?
Have a look back at your last six months of statements. If your payments were late this will contribute to your bad credit rating. Late payments show lenders that you may not be able to pay back your debt in the manner required, so you are a risky individual to lend to.
To start fixing this problem, put reminders in your calendar or phone, or set up an automatic system with your bank, to pay your bills on specific days each month. By having these constant reminders or automatic payments, you can begin to pay your bills on time and show lenders that you are responsible and able to manage your debt.
It may just be an error!
It is possible that there are mistakes, errors or omissons on your credit history that have led to your bad credit score. If this is the case, then you should act immediately to reverse the errors. You can do so by contacting your creditor or a credit bureau. You do not want these mistakes to remain on your credit report because they will impact any future borrowing.Previous: "The Evils of Payday Loans" Next: "Getting out of debt"