Published On: Thu, Oct 18th, 2018

Want to Crank Up Your Poor Credit Score?

There are plenty of reasons that your credit score might not be looking too healthy. Perhaps you went through a difficult time financially and fell behind with your creditors. Maybe you had a business that failed and had to declare bankrupt. Perhaps you’ve just never had credit before- no credit history is often reflected in a poor score. Whatever the circumstances, here are some of the ways you can build it back up again.

 

Get out of debt and earn more money

Getting out of debt is so important. Once you’ve defaulted on a debt, the creditor will put a big red mark on your file every month after until it’s paid off. Getting everything paid up to date and the accounts closed should be your number one priority. You could sell items you no longer use, work extra shifts or even start a side hustle as a way to earn extra money. Home businesses can do very well because these days everything is done online it’s completely possible to earn cash without even having to leave your house. You can securely store data using a vps service, you can work online using software like office 360 and just about every type of business software you can buy can be run online. Earning extra cash allows you to pay debts quicker, they’ll mark your score as either ‘settled’ or ‘satisfied’ depending on whether you paid the full amount, or negotiated a reduced payment.

Want to Crank Up Your Poor Credit Score?

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Put your name on the electoral roll

This one is so simple, yet lots of people tend to forget. Your name on the electoral roll helps creditors verify who you are. Without this, you might get rejected outright without your application even being looked at. Before applying for credit, make sure that you’re on the register and it’s all up to date. It’s so simple and easy to do, just email your local council and they will send you out a form to fill in.

 

Stop applying for more credit

Applying for credit can reduce your poor credit score in the short term. Lots of applications won’t be looked on favourably by lenders who will often draw the conclusion that you’re applying because you’re desperate for credit. Being in dire need of credit could mean a money issue, and therefore a higher chance that you’ll default on your balance. If you’re building your credit score up for an important purchase like car finance or a mortgage, avoid applying for credit and running up lots of searches in the year beforehand.


 

Give it time

Finally, rebuilding your credit score takes time. Unfortunately, it can be destroyed overnight but takes years for it to get it back up. While you should keep tabs on things and make a habit of checking that everything is in order on your report, it makes no sense to stress over it. In most cases, it will take six years for adverse credit to ‘drop off’ your report. The good news is that any adverse credit is less damaging to your score the older it gets- and so a default that was issued three years ago won’t be seen quite as badly as one issued in the last year. Give it time, and learn from your mistakes. The last thing you want is to repair your score and then go through the same thing all over again.

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