Can You Improve a Poor Credit Rating?

Because of the difficult financial environment, many people find themselves with a less than perfect credit rating. There can be all sorts of reasons for this, debt, failure to repay loans or employment status. Credit rating is important because it determines whether you’ll be accepted for a loan, such as a mortgage or credit card, for example. In other words, a low credit rating limits your options for borrowing money.

The good news is that you can improve your credit rating. Credit rating is not something that’s set in stone, and it can be improved if you show yourself to be a “good lender.”

Firstly you should make sure that any debts are repaid or that you’re in the process of repaying your debts. Not everyone knows this, but repaying a loan on time and paying off your debt can give you a better credit rating, and make future loan etc more likely.

There is something called guaranteed car finance. Guaranteed or bad credit car finance is essentially car finance that is issued regardless of your credit rating. So, if you want to buy a car but don’t have the disposable income to pay outright, and have a low credit history, you can still get car finance. You can use this to improve your credit rating, as long as you meet payments month on month. Ideal if you need a car and are worried about a poor credit history.