A bad or poor credit score doesn’t last forever

Having a good credit score is essential for anyone looking to make major purchases or take out loans. Unfortunately, a bad credit score can have negative effects on your ability to get approved for loans, credit cards, and even rental applications. In fact, some employers may even check your credit before hiring you. If you have a bad credit score, don’t worry, it is possible to fix it. However, it may take time and effort on your part.

The first step to fixing your bad credit score is to determine what caused it in the first place. Factors that most impact your credit score include payment history, credit utilisation rate, how long you’ve been using credit, the mix of credit types you’ve had or currently have, and recent credit accounts and applications. Checking your credit report for errors and paying bills on time are important steps to fix a bad credit score. Payment history is the most important ingredient in credit scoring, and even one missed payment can have a negative impact on your score.

Once you’ve identified the factors that caused your bad credit score, it’s time to take action. There are several steps you can take to improve your credit score. One of the most important steps is to pay all of your bills on time. This includes credit card bills, utility bills, and any other bills that may be reported to the credit bureaus. Late payments can have a negative impact on your credit score and can stay on your credit report for up to seven years.

Another important step is to reduce your credit utilisation rate. This is the amount of credit you’re using compared to the amount you have available. Ideally, you should aim to keep your credit utilisation rate below 30%. If you have a lot of credit card debt, consider consolidating it into a personal loan with a lower interest rate.

Opening new credit accounts can also help improve your credit score, but be careful not to apply for too many at once. Each time you apply for credit, it can have a negative impact on your credit score. Instead, consider opening one or two new accounts and using them responsibly.

It’s important to remember that fixing your credit score takes time. Negative information can stay on your credit report for up to seven years, but it will have less of an impact on your credit score over time. The key is to be patient and consistent in your efforts to improve your credit score.

Conclusion

In conclusion, having a bad credit score can have negative effects on your financial life, but it is possible to fix it. By checking your credit report for errors, paying bills on time, and reducing your credit utilisation rate, you can improve your credit score over time. Remember to be patient and consistent in your efforts, and don’t give up hope. Bad credit doesn’t last forever and you can still get poor credit finance on a car or van from Dominion Finance. Contact us today for more information regarding our car and van finance options for local motor dealers and dealers across the North West and UK.

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