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Credit Management

How To Shake Off A Low Credit Score

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Finding yourself cursed with a low credit score can seem like a disaster. Whilst it does limit your spending possibilities, there are ways to get around it. The most obvious is taking action to clear your debts—which you most definitely should do—but there are other ways of improving your credit score.

Shop for specialist loans

The most common place where a low credit score can prove an obstacle is when taking out a loan. This could be anything from a mortgage to a car loan to a personal loan. Being turned down constantly by loan companies will only reduce your credit rating further. Fortunately, there are specialist loans out there that you can take out with low credit—it’s just finding them that’s the hard part.

There are lots of online resources that can help you to find loans with a low credit score. Click here and you’ll find a useful guide for finding a car loan. Investing in a broker is another option. Their expertise often allows them to approach the places that are least likely to turn you down for a low credit rating.

Organize your personal details

When getting a credit check, having inconsistent personal details can often lower your score, as it can suggest fraud. This may be something as simple as owning an old credit card with your maiden name on it or owning an account linked to a previous address. Go to the bank and get them to put all your cards and accounts to the same name and address.

You should also consider placing yourself on the electoral register. Even if you don’t intend to vote, being the register can help confirm your identity.

Consolidate your debt

Lots of debts can look a lot worse than one single debt. Paying off all your other loans by using one big consolidation loan. Not only could this improve your credit score, it will help you to have more control over your debts. You will get added interest, but this may be worth it in order to get on top of your debts. Common debts that can be consolidated may include a mortgage, a car loan, a student loan, personal loans and payday loans.

Use a credit-building card

Some banks and providers may offer a special credit-building card. Using this to borrow money and paying back regular installments every month for a year can help repair your credit score (the card provider will put in a good word to any companies that want to do a credit check, but only if you’ve paid off a year’s worth of payments). To some, this may feel like an unnecessary expense. However, if you’re credit score is dangerously low and loan providers and phone shops and car dealers are all turning you down because of it, this card may be your most effective option.

 

Credit is one of those things that most people don’t learn about in college—you just have to figure it out as you grow up. Don’t worry, though, because there are plenty of resources out there to help you along the way! If you feel like you’re stuck with your low credit score, that is certainly not the case.

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