Last Updated on Feb 25, 2020 by James W
Debt is something that many people here in the UK are dealing with on a daily basis. Statistics released earlier this year showed that the UK household debt is now £15,400, which is a record high and is being deemed a “crisis level” by financial experts. And it’s not just debt that people are dealing with, it’s also bad credit.
Your credit score isn’t something you typically worry about, that is until you discover you have “bad credit”. Some of the latest figures gathered by ClearScore show that 43% of people have missed debt payments in the last year, which of course directly impacts your credit score, and that 29% of people are using up more than 50% of the credit that is available to them.
If you’re one of the many who has bad credit, it can feel like the end of the world, and for good reason, since it is a serious issue. But the good news is that bad credit doesn’t have to be permanent. There are steps you can take that will help you improve your credit rating, and also get by during this time.
Begin by Checking Your Credit Score
When you first learn you have bad credit, it may come as a surprise, as not everyone keeps up with their credit score. This is why it’s important to get a copy of your credit score from a reputable credit scoring agency. The credit scoring agencies in the UK are Callcredit, Experian, and Equifax.
Once you have your report, make sure you look it over carefully to ensure there are no mistakes or false entries that may be affecting your score.
Need Cash – Look for Lenders Which Offer Bad Credit Loans
While it would be great to start working on your credit score and improving it, sometimes the more immediate step is to have access to cash. When you have bad credit, you can’t simply stroll into the bank and expect to be approved for a loan, a line of credit, or even a credit card. This is when you’ll need to find lenders who offer a bad credit loan UK residents can apply for, such as Simple Personal Loans.
These types of lenders won’t automatically turn you down simply because you have bad credit. Instead they will work with you to provide you with the money you need, at a reasonable rate, and decent repayment terms. Now, keep in mind that the interest will be higher than a traditional loan, but that is because you are considered a higher risk than those with good credit. Just be sure to stay on top of your payments.
Work on Improving Your Score
Now that you’ve learned your score, and you’ve accessed the cash you need for right now, it’s time to start working on the future and improving your score. Some of the steps you can take are to ensure you are paying all your bills on time, watch for any fraudulent activity, work on bringing down your debt, cut back on expenses, and consider downsizing your home/car/utilities so you can make that dent in your debt.
Bad credit is most definitely alarming, but it doesn’t have to be the end of the world.