How To Deal With Bad Credit Report
It is your credit rating and report based on which a lender will decide how much loan to offer you and for how long. In order to get the best loan deals, credit card and mortgage, make sure you are constantly working to improve your score and avoid making mistakes that will affect your credit rating. There are several ways that will help you to deal with your bad credit report and guide you to mend it with time.
Does Bad Credit Really Matter?
Yes, bad credit does matter. When your credit rating is bad, it will limit you from the various borrowing options. Any bad spot on your credit card will make it difficult for you to secure credit against your name, be it a mortgage, new credit card or even a mobile phone contract. Besides, every time you miss your credit card payment or any other important bills, it will directly hit your credit status and cause you problems. The very first sign that you have bad credit is when you apply for credit and it is turned down. Such refusals will leave a footprint on your file and when you have a lot of them, it can make matters worse.
Check Your Credit Rating
In order to deal with your bad credit report you need to know what exactly is there in your credit report card. Most of the lenders will go through your credit report provided by the three major credit agencies to understand how effectively you have paid your past debts. Every time you opt for a new form of credit, it will leave a mark on your record. You can easily check your credit score for free of charges.
How To Improve My Score?
There are several ways that will help you to improve your rating. The process of building up your credit history is a slow. As you start making payments on time your credit history will start building up. The longer you delay your bill payments, the greater the impact will be on your credit score. Most of the negative marks made on your file will remain for at least six years.
Ensure all your debts are registered to your correct name and address, there is mistake on your file and you are registered on the electoral roll at your current address. Besides, make sure you do not make too many applications for credit at a stretch. Lenders consider such acts as desperation. You should always apply for credit that you are likely to get and afford to repay back on time. Try your best to show lenders you are a responsible borrower by boring and repaying it back. If you are finding it difficult to repay you can request for smaller repayments.
Dealing With Wrong Information
If you find any information wrong or incomplete in your credit report, you should contact the credit agency and explain what is wrong and ask to get it sorted out. You may also need to provide proof. You need to make sure all your personal information is correct and up to date. Even one mistake, as simple as your house number, can cause mix-up and cause major problem. By simply making sure you are on the electoral roll and have filled out the credit application forms correctly will help you to boost your rating.
What A Credit Score Tells About An Individual?
A credit report will list all your credit agreements. All three credit agency may hold slightly different information about you. Thus, it is worth checking all three for a more accurate picture about your credit report. Your credit score will include your name, address, date of birth, the credit application you have made, information about your joint loan or bank account, late or missed payments or defaults, the amount of money you owe, County Court Judgments (CCJs) against you and if you were declared bankrupt or entered an Individual Voluntary Arrangement (IVA).
What A Credit Score Will Not Have?
Your credit score will never have information about your salary, student loans, medical history, criminal record, parking or driving fines and council tax arrears.