There are a few things that I wish were instilled in us from an earlier age; the importance of maintaining a good credit score being one of them. When you’re younger, it’s all too easy to get swept up in the finance options that open up to you, without any real regard for the consequences. Truth be told, I wish someone had helped me understand the severity of how your credit rating can impact you later in life. With a bad credit score, your eligibility to take out a mortgage or loan can be greatly diminished.

Your credit score makes up the information that lenders use to determine whether you should be trusted with a loan. It also factors into how much you’re entitled to and the rate of interest charged to you. Whether you’re new to the world of credit, or you’re looking to improve your existing score, there are steps you can take to build your credit rating. Here are just a few of the most effective ways.

Poor Credit No Problem Smart Ways to Improve Your Credit Score Now

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Get Your Foot on the Ladder

As far as I’m concerned, you should try to build your credit rating at the earliest opportunity. In truth, I probably waited a little too long. By the time it came to moving out and standing on my own two feet, it was that little bit harder to get accepted for finance options. My advice, whatever it’s worth to you, is to take out some kind of credit in your name as soon as you have a steady income. That isn’t to say that you should go crazy with a credit card you have no chance of ever paying off, but finance you can easily repay will get you on the ladder.

Borrowing with Bad Credit

Finding lenders that are willing to accept you for a loan with no history to demonstrate that you’re a sensible borrower can be tough. As I mentioned earlier, most banks or credit companies won’t want to take a chance on you if they suspect you’ll struggle to repay them. Don’t panic. You do, however, have a couple of options. You can take out a prepaid credit-building card, or look at shopping catalogues for bad credit. This gives you the opportunity to improve your credit score. But, and I cannot stress this enough, you need to make sure that you make all the repayments on time. Otherwise, you’re just going to damage your reputation even further.

Avoid High-Interest Rates

Having a bad credit score doesn’t make you a bad person. It simply means you’ve made a few mistakes, and who can honestly say they’ve never done that? More often than not, those with bad credit have done so by falling into traps set by lenders. Companies that offer payday loans may seem like a good idea if you’re struggling to make ends meet, but they’re not worth the risk. The chances of falling behind on your repayments due to extortionate interest charges are too high. Avoid higher interest rates like the plague, and you’ll reduce the risk of failing to meet your payments.


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