Reasons to Fix Your Credit ASAP

County Court Judgments could place your name on the blacklist if you have an unattended bad credit score. As a result, you may find it difficult to borrow money from lending companies and banking institutions. Thus, you will not be able to secure a mobile phone contract, more so, a mortgage.

If you fail to pay your debts, a black mark could be put against your name that will alert banks to decline any of your pending applications. This bad credit reputation immediately leaves a mark on your profile so donít let them pile up over time.

But if you still happen to have a bad credit rating, considering turning to the sub-prime market. This is where borrowers can have access to loans with high-interest rates, because of the risk involved.

Ways to improve your credit score

Hereís how you can build a better credit rating:

  • Your direct debit account(s) must be registered with a correct name and updated home address.
  • All information in your file must be true and correct, including the debts or payments made by other people under your name.
  • Ensure your voterís registration at your current home address.
  • Do not apply for too many loans, including a mobile phone contract, that you cannot fulfill in the long run. Choose your applications well.
  • Shop around. Ask for quotations if necessary, before getting yourself a deal you canít keep.
  • Pay your debts on or before their due date, otherwise, you are just showing how irresponsible you are with your financial obligations. Lenders like it when the borrowers are able to make things easy for them, especially in the first six months.
  • Keep all your repayments by opening a direct debit account. You may also ask your lender for smaller repayments, if ever you find it difficult to keep up.
  • You may combine your finances with someone who has a good credit score, otherwise, tell your lender that you wish to split it up so that the other personís bad credit rating will not have an effect on yours.
  • Include other personal details such as a landline number, employment history, permanent residence address and long-term bank record, in your application form.