The words credit score will immediately give people a great sense of anxiety as they fear that they have a poor credit rating which will have a negative impact on their life and stop them from getting access to credit when they need it.
The truth is that having a bad credit rating is not the end of the world and there are always steps that you can take and alternative paths if you need access to credit.
Checking Your Score
Many people do not even know their credit rating as they are too fearful to check. It is best to check your rating sooner rather than later so that you can take steps to improve your rating which can take time. You should never panic if you have a low credit rating and this is actually quite common in the UK. In fact, 1 in 3 Britons are turned down for the best mortgages, credit cards and loans due to poor credit.
How to Improve Your Score
So, what should you do if you have checked your rating and you have a bad credit score? The most obvious answer is to take steps to improve your rating but many people do not know how to go about doing this. There are many steps to improve your credit rating, such as getting on the electoral roll, use a credit card little and often to build credit, pay bills on time and eliminate debt. You should also check your current report for inaccuracies as these could be negatively impacting your score.
Bad Credit Accounts
It can take time to improve your credit rating but it is certainly worth doing. In the meantime, you can still find access to credit and open bank accounts as there are banks which have accounts specifically for those with bad credit, such as Think Money. These accounts can make it easier to manage your finances, ensure that you never miss a bill payment and allow you to rebuild your credit score over time. This can also help you to avoid late payment fees and unexpected charges to help you get the most out of your money. There is no check to open one of these accounts so you can open an account regardless of your rating and even if you are an undischarged bankrupt.
It is easy to panic when you find out that you have a bad credit rating, but this is not the end of the world and it is important not to panic. You may struggle to get approved and the best rates for loans and credit cards, but you can take steps to improve your rating over time and get access to financial products designed for those with bad credit. The key is to check your rating sooner rather than later so that you can determine whether or not you need to take action.