Credit Options If You Have A Bad Credit Rating
Posted August 11th, 2009 and last modified July 12th, 2011Anyone can get a bad credit rating. It can ruin your future. For most people the thought of a bad credit file is devastating. The problem with having a bad credit score is that it can reduce your chances of getting a simple mobile phone, and whenever you agree to allow your credit history to be examined you are putting yourself at risk to get a bad credit rating.
Order a copy of your credit file
Receive email alerts whenever specific changes occur on your credit file for 12 months. You also receive a copy of your credit file despatched within one working day..
Receive your credit file with information on:
- Details of consumer credit enquiries
- Details of overdue consumer credit accounts
- Commercial credit enquiries
- Details of overdue commercial credit accounts
- Bankruptcy & Court Judgements
- Writs & Summons
- Information on your current relationship with a credit provider
First let’s look at what bad credit is
Most people who are credit active have a credit file, but don’t realise they do. Their credit file contains their personal details such as previous credit applications, some current credit accounts and overdue accounts. Even payment defaults dating back five years are contained in this file.
How do you get bad credit?
You only have to forget to pay a utility bill one time or exceed the limit on your credit card, and you could have a credit default placed on your credit file. Alternatively if your power is cut off or your car repossessed, this information is kept on your credit file for years and can lead to negative applications.
How to find out if you have a bad credit file?
You can apply to see your credit file for free by visiting the My Credit File website. The service is free, but if you need it urgently a fee may be required. You should check your file at least once a year and look for any discrepancies.
What to do if you find an error?
Correcting any inaccuracies can be a lengthy process. Once you have found an error, you need to contact the company and ask them to correct it. An error could be a simple overdue account that is now paid and up-to-date. The defaults show up for five years, if you find errors you need to have them investigated immediately.
How to keep a good credit file?
- Make sure that you pay all bills on time.
- Review your credit file regularly and report inaccurate findings.
- If you are having difficulties in paying a bill, contact the provider and arrange a solution.
Just having a clean file will not guarantee you a loan or any form of credit that you are pursuing. If for some reason you get declined make sure you find out the reason why. It may be something simple that was overlooked.
Too much credit debt:
Some people find it hard to pay off their credit cards, if you struggle with this too, then you do have options.
One solution is to transfer the balance to a new credit card (a balance transfer credit card) with a better deal from the new lender. By doing this you will get lower fees and interest, and both could be saving you money in the short term.
Bad credit can hit anyone, the top earners as well as the low earners. If you have been declined from a credit institute it could be because of a bad credit rating. Check your credit file. Having a bad credit score can have adverse outcomes on your financial future and limit your chance of securing a credit card or a loan for your home.
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