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A Guide to How to Deal with a Bad Credit Score and Improve It

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Unfortunately, it can become much harder to buy certain items if your financial credit score has been assessed as being poor by a credit reference agency. Some important things you will be less likely to be able get with a poor credit score include a mortgage loan, renting a property, a mobile phone contract, loans for jewellery, personal loans, business loans, a student loan, car insurance, and much more. Life in general with a bad credit score can be a lot tougher. Therefore, for anyone with a bad credit score it’s essential to look out for any way possible to improve your credit score.

Read on to find out about tips we have come up with on dealing with a bad credit score and ways to improve it. 

To Live with a Bad Credit Score is a Pain, But There’s Ways Around It

Getting a bad score from your credit report can be a real nuisance and makes it harder to purchase certain products and take out some types of loan. Something as simple as purchasing a modern mobile phone on a contract such as an iPhone 12 or a Samsung Galaxy A52 often involves credit checks, and you can be turned down for having a bad credit score. Lenders worry those with bad credit may run up a large bill on a contract and then be unable to repay it. To find the best phone contracts for bad credit, check out Accept Phones, which offers a variety of Zero-Credit-Check deals.

Check Your Credit Report with a Fine-Tooth Comb and Correct any Mistakes

It is advisable to check through your credit report on a regular basis to ensure that the information on there is correct and fully up to date. You can request your statutory credit reports free of charge and check that the information credit reference agencies hold on your finances is correct and accurate. The credit reference agency TransUnion promises to provide an outcome for disputes concerning incorrect information in a credit report to you within 28 days.

Prove You are Able to Fully Pay Your Monthly Rental Fees on Time

Getting your hands on a mortgage loan for a property can be notoriously difficult for people with a bad credit score. Those renting a property sometimes pay out more per month than homeowners with mortgages. 

Reporting your rental payments is one way to improve your credit score and prove to lenders you will be able to pay back a mortgage. Tenants should therefore provide a copy of their rental payments to put on their credit report.

To improve your credit score, it’s of course vital that your monthly rent payments are done on time. A record of regular late or delayed rent payments will make a lender less likely to offer you larger loans such as mortgages, business loans, and so on. 

Make Sure You Register to Vote

Lenders carry out identity checks to ensure the personal information you provide them with is correct. The electoral roll is used by lenders and lenders as a way of verifying the address given in your credit application. With some credit agencies in the UK, registering to vote can increase your credit score by up to 50 points.

It’s harder to get approved for credit if you’re not registered on the electoral roll. So, register to vote to improve your bad credit score.

Having a good credit score is important in adult life, so take these small steps to make your life easier.

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