Bye Bye To Bad Credit

How to clean up your credit rating and get that cash loan, fast!

So you’ve checked out your free credit report, and it’s not looking great. No one wants a bad credit rating, but it’s more common than you think. When you’re unemployed, on government benefits or a low income, it can be hard to keep up with all of your payments. But don’t despair if despite your best efforts your credit rating isn’t as healthy as you’d like. The good news is, it doesn’t have to stay that way.

There’s many things you can do to help turn things around and improve your credit rating, and fast. Here are 6 suggestions that can help.

1.    Check for mistakes on your credit report

Get a free copy of your credit report and go through it with a fine toothed comb – you might be able to identify some mistakes and get them corrected. Examples of mistakes that can occur are:

  • errors with your personal details, including mistaken identity or identity fraud
  • mistaken defaults and judgements
  • old defaults and judgements that should have been cleared
  • incorrect details of your credit history

If you find any errors you should notify the credit reporting agency in writing, including any supporting documentation you may have. Listings on your credit report that cannot be proven must be removed.

  1. Clear any defaults you may have by organising a debt consolidation loan
  • Wrap up all your outstanding debts into one easy loan and repayment, eliminating all your current defaults to help you manage your debts more effectively.
  • In the long run this will be of benefit to your credit rating.
  • City Finance can help you with this – apply for a fast cash loan here.

3.    Get rid of your credit cards, especially store cards

These carry very high interest rates and can be the quickest way to establish a bad credit rating. Cut them up, and clear any outstanding balances. Missed credit card payments can take 2 or more years to be removed from your credit report, so don’t run the risk of being tempted to use them again and having to start the repayment cycle all over again.

4.    Put your bills on autopilot

Set up all your bills to be automatically debited from your account every month, on time. This way you need never worry about late or missed bills again.

5.    Add information that can help your credit report

Increase your likelihood of being approved for a credit application by adding information that demonstrates your ability to make repayments.

  • For example if you are married, a homeowner or long standing tenant with a clean rental history, or have been with the same employer for over two years, then these are facts that may help your credit record.
  • Lenders view this information positively and it may assist with your application.
  • If you believe positive information is missing from your report, notify the credit reporting agency so that it can be added.

6.    Start building good credit by maintaining a good credit track record

A good credit history is built by showing your ability to make repayments. Of course the catch is that when you have a bad credit rating, it can be hard to obtain credit and demonstrate that you can manage your debts effectively. However, by obtaining a debt consolidation loan and always making your payments in full and on time, you can develop a good credit history and improve your credit rating.

For help applying for a debt consolidation loan, contact City Finance today!