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Improving a bad credit rating – what you can do?

credit historyFinding additional funds to cover bills and living costs can be difficult in instances where applicants have bad credit.

Taking measures to improve a credit score can help the situation, as it showcases an ability to manage money effectively.

In order to make a difference, an understanding of how credit ratings work is required, so checking a score with a credit agency is the best place to start.

This should mean it’s possible to calculate what changes need to implemented and is a solid foundation from which to start managing finances.

It’s important to check that information is correct too, as failing to observe parts of a credit report could have serious implications on the rating in the long-run.

Those with bad credit could fail to check and dispute any issues with their rating, meaning they could lose out on potential benefits.

For anyone that has previously has a joint loan agreement set up, they should also ensure that they are removed from the report if all repayments have finished.

There is no reason for that financial connection between the two parties to impact upon a credit score if this is the case.

Those trying to improve their credit rating should also limit the number of times they apply for credit, as each application is logged on the system and is accessible by other lenders.

Where customers just want to find available deals, a ‘soft search’ option should be taken as these searches would not be seen in a negative light by a lender.

Such a high number of cases can imply financial difficulty and this can make accessing finance a lot more difficult.

In terms of the credit score itself, it will be a three digit number that acts as a summary of a person’s credit activity which is calculated by analysing a credit history.

Most scores will range between 300 and 900 although higher scores are viewed in a better light – therefore taking steps to build a positive credit history is certainly recommended in the long run.

Alternative solutions are available however; debt consolidation loans are there to assist in situations when reviewing finances, taking all your outstanding debts and bringing them together into a single bigger loan with a more manageable single repayment.

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Andrew Wayland
Marketing Director at Everyday Loans
Andrew Wayland is a financial marketing expert and helped set up Everyday Loans back in 2006. Prior to his position as Head of Marketing for Everyday Loans he worked as the Head of Commercial Development for a tech start up and ran his own PR agency for around 5 years. LinkedIn: https://www.linkedin.com/in/andrew-wayland-9018074