I had cause to check my credit rating this week. I’ll be honest I have always just presumed it would be good. I pay my rent on time, clear my credit cards, and have a small loan. I couldn’t imagine a reason to have a less than excellent rating.
So imagine my surprise when I found that actually my score is average to good, rather than the Ofsted Outstanding I was hoping for.
Because I forgot to pay my Next bill a couple of times a couple of years ago. I didn’t intentionally mean to not pay, I just forgot. Foolish yes, result of not enough money, no.
So imagine if you did fall into some financial strife causing you to miss a few payments, suddenly I can see how easy it would be to have a poor credit score.
What are your options?
If you have poor credit I would instantly start to look at ways to improve on that. You can check your credit score at Experian, or Noodle, and see how you fare.
Quick ways to improve poor credit include:
- Get on the electoral roll – small thing but it helps
- Cancel any unused credit cards
- Ensure you make at least the minimum payment every month on outstanding debts, missed payments cause poor credit.
If you still need credit?
All is not lost, there are still firms who will lend you money if needed. For example, MoneyBarn, who I am working with currently, offer car finance, but look outside of your credit score. They look at the car you want to buy and the amount of deposit you can put down, then they look at affordability, and they look a credit score – but try and understand the reasons behind any poor credit instances.
You will find similiar companies who can offer support, but ensure you look at their terms and conditions and the amount you will be repaying.