How Bad Credit Happens and How to Avoid It
You may have bad credit and not even realise it. If you’ve never had to apply for anything that required a credit check, you might not know what state your credit is in. But you probably have phone, power and water providers who send you bills or you may have a credit card that’s being paid off. If you’ve ever been late or missed making a payment and didn’t rectify it with your provider in sufficient time, you might have negative items on your credit report. This means your credit rating may be low, thus affecting your future ability to access finance.
How Bad Credit Happens
There are a number of ways to avoid bad credit, the most obvious one being – keep on top of your repayments for all that you owe. It’s been said that even making minimum repayments on debts can make your credit report less than ideal, as it looks like you’re barely meeting the requirements. If you do find yourself unable to pay your current bills or debt, always let the provider know before it becomes a problem. On the flipside, your credit can be poor simply from having no debt. If you’re young, never had a credit card or a phone contract, you are likely to be turned down for finance. Your credit rating will be adversely affected if you are late on repaying a loan or your mortgage and don’t make amends with your lender in time. If you are unable to pay your utility, phone or credit card bill and can’t do so within the set time-frame, your provider will pass on your debt to a collection agency who will then chase you up. If you find yourself in this situation, you’ll also find yourself with bad credit. Any borrowed money that is not repaid on time or consistency goes on your record. This is the record that lenders check when reviewing your eligibility for finance. Each time a bank checks your credit file, it’s lowered a little.
Bad Credit Solutions
People with bad credit are not left out in the cold in terms of finance, there are still options! One option is a bad credit loan; rather than going through big banks, individuals can access bad credit loans regardless of what their history is, including having previously filed for bankruptcy. Bad credit borrowers are often rejected by major lenders because of their low credit ratings, or for having histories of repossession or unemployment.
Bad Credit Loans
A bad credit (or subprime) loan will often have higher interest rates than regular loans, as they don’t rely on collateral (such as property) as certainty for repayment. Bad credit loans are usually a much faster process, as there is less of a need to review an individual’s history – people don’t generally apply for subprime loans unless they’re out of finance options.
You do not have to live your life with bad credit. Bad Credit Loans offer a personal and professional service to help you get back on track. It’s as simple as filling out a quick enquiry form and from there, our team is able to understand where you’re at, and how to improve your situation.