A bad credit score can follow you around. A poor credit rating might prevent you from getting approval for a mortgage or a business loan, and even getting a contract for the latest iPhone can become very challenging. It’s very easy to fall into a spiralling credit rating, but there are ways to tackle them. The more that you work at improving your existing credit rating, the faster it is to recover and move on. If you struggle with finances or made a cash mistake years ago that has affected your credit rating ever since, here are some of the best ways to get your credit score back on track.
Know Where You Stand
Your first step should be to find out exactly what your credit score is. There are plenty of ways to check your credit score online, and you are no longer penalised for checking your score multiple times. Use a variety of credit report platforms because you may find differences between them. If you spot any mistakes, make sure that you start the process of rectifying them. Having a poor credit score is one thing but having one because of a technical glitch is incredibly frustrating.
Register to Vote
Whether you plan on ticking a box or not, getting on the electoral roll is essential. If you’re applying for credit, then you will be much more likely to get approval if your home address is confirmed by the local council. Look at your credit report and make sure that the right address is listed.
Repay your Debts
Once your first steps are out of the way, you need to address the reasons for your bad credit score. Most commonly, a weak credit report will be due to unpaid bills or CCJs. Make sure that you have these clearly identified. Contact every company that you owe money to and make arrangements to pay what you owe. Don’t cripple your finances immediately. Most debts can be paid back over long periods, so you don’t always need to leave yourself out of pocket too much. However, the faster you can pay back what you owe, the faster your credit score will start to show signs of improvement.
Lease a Car
You might not get approval for a car loan if you have a poor credit score, but that doesn’t mean that you must live without wheels. When you need a vehicle for work or for daily living, the costs of buying one outright can be very prohibitive. The best way to avoid the issue is to lease a vehicle. Although the majority of car companies will not lease a vehicle to someone with bad credit, there are companies like cvsltd.co.uk who specialise in getting drivers with CCJs and poor credit the vehicle that they need. Don’t forget that leasing can itself have a positive effect on your credit rating, if you keep up with your payments.
Once you have a financial plan, stick to it. Although it can take time to re-establish your credit ratings, the benefits are more than worth it. No matter what caused your credit rating to fall, address the issue and take steps to recovery. You might be surprised by how much it can change your life and your financial health.