Do you have a poor credit rating?
You can take simple steps to improve your credit rating
In these times of recession, many people are suffering financial difficulties. Late payment or non payment of your bills usually leads to a county court judgement (CCJ). This can be marked on your credit record and ultimately leads to a poor credit rating, making it difficult to obtain further credit or bank loans as (in their eyes) you become a high risk to defaulting on any further loans.
There are some simple steps you can take to slowly improve your poor credit rating
- Use an online credit scoring site such as Experian to check your credit rating. A score above 720 is considered to be 'good credit rating,' and a score below 600 is considered to be poor credit rating.
- Consider using a low limit credit card as a way if improving your poor credit rating
- Open a no thrills bank account with no cheque book, or overdraft facility
- Try to keep away from high interest services such as payday loans, cash for equipment conversions (high interest pawn shops) etc.
Credit repair - Improve your poor credit rating
This video has some handy tips for improving your poor credit rating.
A County Court Judgement stays on your credit record for 6 years
but if you act quickly, you can make changes that will help improve your credit rating. Ultimately a poor credit rating makes your cost of living more expensive as you pay more interest on any credit you might take. Take small steps and build new financial relationships to improve your credit rating. Work out a weekly or monthly budget depending on how you get paid and arrange with any credit defaulters for payments to come out of your account on the day you get paid.