How to Repair Your Credit Rating

How to Repair Your Credit Rating

You accidentally forget to make a payment, or change banks and unwittingly leave a direct debit behind and not long later, your credit rating is in tatters. Good credit ratings can take years to build, only to watch them crumble and burn before your eyes due to one payment on your phone bill that you didn’t get a reminder for and paid a week late. It really isn’t fair, but there isn’t much you can do once your credit rating has started its journey down the slippery slope except for try to build it up again and hope it doesn’t drop any further. Here are some of the best things that you can do to rebuild your credit score.

Don’t Apply for Credit You Know You Won’t Get

It can be tempting, at times, to apply for that credit card deal you’ve seen, a car on finance, or other line of credit even when you know that your credit rating is poor and there’s the slimmest chance ever that you’re going to get accepted. Often, people will still apply for credit – hoping that they’ll get lucky and something will have gone wrong with the system, or that their credit score has improved. Nine times out of ten, neither of these will happen – and you’ll be left embarrassed and with a footprint on your credit score that damages it even more. If you must apply for credit, take advantage of eligibility checkers beforehand.

Keep Making Repayments

One of the reasons why you might be finding it difficult to open new lines of credit could be that you already have what is deemed ‘enough’. If you have a large amount of debt, you could be stopped from getting more, even if you’re paying it back on time. So, keep on making repayments as normal, and stop spending on credit cards as much as possible in order to bring your debt level down and improve your overall credit rating significantly.

Go for Poor Credit Loans

Certain companies will accept people with poor credit ratings for loans, credit cards and hire purchase items. However, it’s not advisable to apply for any new credit until all existing debt is paid off when you have a bad credit score. Once you’ve paid off all existing debts, using bad credit personal loans, hire purchase items – for example pay weekly furniture stores – that typically accept bad credit and credit cards specifically designed for rebuilding your credit rating can help you to get on your way to repairing it.

If You’re in Real Trouble

If you are in real trouble with your debt and it’s becoming impossible to manage, the worst thing that you can do is ignore it. This won’t just plummet your credit rating right down to the lowest of the low, it’ll also mount up, resulting in you owing even more every time that you don’t pay. When it comes to debt there are many different ways in which you can be helped. Speak to an advisor as soon as possible.

Have you successfully rebuilt a poor credit rating? We’d love to hear your story in the comments.

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