Take Control of Your Credit Score Especially If You Have Bad Credit
Control Your Credit Score Step By Step How To
The demand for short term finance is on the rise. A large amount of households around the UK are finding the need for borrowing to make ends meet and to service their credit commitments and standard of living each month. The availability of credit from high street banks has significantly reduced in the last 5 to 8 years, which has led to a huge increase in the market for short term high cost lenders. Whilst these lenders have provided a much needed service to close a wide gap in the market, it can often lead to borrowers paying high interest rates, thus increasing the need to borrow more and more money to service it.
“Getting to grips with your current credit rating is the first step in the right direction to taking control of your finances”
It can be a vicious circle, and the only way to break the cycle is for borrowers to become more savvy when it comes to their current credit position. Getting to grips with your current credit rating is the first step in the right direction to taking control of your finances. Free monthly credit repost are available from a number of sources. www.noddle.co.uk and www.clearscore.com are 2 such examples. Only when you know your true position, can you start to focus on fixing the areas that are holding you back when obtaining better value credit.
It’s important to get the basics right when it comes to your credit report. For instance, being registered on the electoral role has an impact on your overall score, and lenders will often take this in to account when judging whether you are credit worthy or not. Taking this simple step of ensuring you are registered to vote at your current address can have a positive impact and increase your chances of being accepted. You should also make sure you close any credit accounts you are not using. Lenders will review your available credit as part of your application. Close any credit card or store card accounts with zero balances to ensure you are getting a fair decision.
Another vitally important factor is your ability to service the credit you have already obtained. Things like staying inside your limit on credit cards, paying more than the minimum payment, and avoiding late payments show that not only are you responsible when it comes to your finances, but you represent a lower risk for the potential lender. Having no credit can also be seen in a negative light when making new credit applications. Lenders like to see a track record of responsible credit handling before deciding whether to approve new applications. It’s worth having a credit card, and using it throughout the year. Using a credit card and paying it off in full after use will not cost you a penny, but it will demonstrate that you have the ability to handle credit, and in turn categorise you as a lower risk.
“A perfect credit score takes time”
A perfect credit score bad credit takes time, and will not magically happen over night. But making use of all the information available to you will put you in the best position to start building for the future. Following these basic steps is a good place to start, and will give you the best chance of turning that next ‘no’ into a ‘yes’. for futher resource about bad credit there is also video help