If you have a less than satisfactory credit rating in the UK, the chances are that you’re not alone. In fact, one-in-three Britons had credit applications rejected for this reason as recently as 2015, and this remains a prominent issue in the wake of the great recession.
Having a bad credit record does not necessarily need to represent the beginning of a downward spiral, however, as this can be reversed and improved incrementally over a period of time.
But how can you achieve this? Let’s take a look at three relatively simple ways to enhance your credit score:
1. Consider Taking out a Bad Credit Loan
In many ways, the idea of taking out a loan in response to a poor credit score may seem a little counter-intuitive.
After all, not only is this likely to increase your unsecured debt levels, but a negative credit history may require you to make several applications without success.
To negate this, you should consider making a bad credit loan application through a reputable lender such as Ocean Finance. This will afford you access to a viable line of credit, which has a restricted limit and demands manageable monthly repayments.
So long as these are maintained, you’ll be able to build a positive transaction history that boosts your score over time.
2. Reduce your Debt Level
We’d always recommending reviewing a free copy for your credit score when looking to make improvements, as this can offer an accurate insight into your finances and provide actionable steps for the future.
This will also highlight any potential debts that are still active and driving higher interest repayments, which are not only hindering your credit score but also causing your cumulative debt mountain to grow higher with every passing month.
By tackling these individual debts head on and reducing them, you’ll instantly minimise your burden while also building more positive transactions on your credit report.
3. Be Open with your Creditors
Ultimately, maintaining open lines of communication is fundamental to your chance of resolving any ongoing dispute (financial or otherwise).
It definitely helps in the case of creditors, however, who always respond better in instances where debtors are open with them and happy to discuss potential payment plans or compromises.
So, taking the information from your report, take the proactive step of contacting lenders before they contact you, discussing your issues honestly before exploring solutions.
This can be difficult to do, but it only becomes harder the longer it is left!