Can a Bad Credit Rating Get Better?

No-one wants a bad credit rating. Bad credit will make life really hard for you if you're in a tight spot and need some financial help. If you have a bad credit rating, traditional lenders such as banks, will avoid you, and lenders who are willing to help might charge you hefty fees and interest because of it. There's no doubt, having a bad credit rating puts you in a tough situation. How can you move on and improve your chances of getting credit in future?

The main contributor to a bad credit rating is failure to pay bills, so paying all bills on time, every time is essential to improving your credit score. If you're the forgetful type, set up automatic payments through your bank and you won't ever miss those payments again. If you have accumulated debt from unpaid bills or fines, don't ignore it. Get organised and start paying those debts back as soon as possible. Overdue accounts stay on your credit file for 5 years and become part of your history. Although it might take some time to repay those debts, the fact that they are being repaid shows a positive history to anyone who looks into your credit file.

So, the quickest and best way to improve a bad credit rating is not to ignore it and start to establish a good credit history by making repayments on all overdue accounts. At the same time you're building a good credit history, it's essential to stay up to date with all new bills. As your repayment history improves, potential lenders will look more favourably on your requests and over time your credit score will get better.

 
 
 
 
 
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