Is bad credit holding you back from being accepted for a credit card, loan or mortgage?
Well, it doesn’t mean you’ll never be accepted. But you need to improve your credit history first. Find out how here.
Check your credit history
First things first – you need to check your credit history to find out what you’re dealing with. You can do so by signing up to one of the UK’s three free credit-checking services, Noddle, ClearScore or CreditMatcher. You can even sign up to all three.
Look for errors
Your credit history is a record of all the financial agreements you’ve made and how you’ve managed them over the last six years. If in that time you’ve been late with payments, missed some altogether or received a CCJ, your credit history will show this.
When you check, if you notice something that isn’t right – like an account being listed as open when you closed it or that your address is out of date – let your credit-checking service know. You can find out how here.
Delay applying for more credit
Every application for credit you make shows on your credit history – whether you’re accepted or not.
Lots of rejected applications spaced close together can make you look desperate to borrow – which is pretty off-putting for lenders.
If you have a poor credit history, it’s a good idea to hold off applying again until it’s looking healthier.
Stay in control of your payments
Late and missed payments leave a negative mark on your credit history, so avoid these at all costs.
To give your credit score the best chance of recovering, always make your mortgage and loan repayments and at least your credit card minimum payments on time.
If you’re struggling to keep up with these, let your lender know as soon as possible. You may be able to come to a new agreement before your credit history is damaged.
Wait it out
Any negative mark on your credit history stays there for at least six years, unless the lender agrees to remove it. Waiting it out could open you up to more lenders in the future.
Bad credit doesn’t last forever – and now you know how to improve it.
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