What you can do about bad credit

If you have been having trouble with settling credit previously, it may result to a low credit rating, which affects whether you can still borrow or loan money in the future. Aside from this, there are no standard rules and regulations that lenders follow when it comes to assessing who can borrow and who cannot. One lender turning you down does not automatically mean everyone else will do the same. However, it makes borrowing no less difficult.

If your credit history involves missed and late payments, as well as overdue charges that are only paid in minimum, also makes it less likely for you to easily loan money as lenders would then be taking a risk with a borrower who is unable to make full payments. However, those who have no credit history as well – or those who never had money or never borrowed before are also not guaranteed to be approved of a loan – a short or non-existent credit history makes it rather ambiguous to lenders on a person’s paying capacity.

However, it is not a lost cause just yet. Those with poor credit ratings can still increase it by making an effort to pay in full, and avoiding late or missed payments. Ensuring that you are up to date and that you can pay in full increases confidence in the lender’s side that you can do the same for them and avoid causing problems. But if it is not possible to settle in full, at least contact the lender to agree on terms that will work for the both of you. It is possible that you can request for certain penalties to be lifted, provided that you pay the agreed amount on time.

You may check your credit rating and history with a reputable credit reference agency to have an idea of how you are doing. Also, you can take this opportunity to ensure that your information is accurate and updated. Furthermore, it is best that you ensure you are on the electoral roll and also check if your account has been compromised in fraud – not only to ensure your finances, but also to ensure that your credit rating does not go down in flames due to another person’s wrongdoing.

Furthermore, there are still options available for those who have bad credit history. There are ‘bad credit’ loans and credit cards being offered to settle your debts slowly over time. These types of loans are ideal if you only need a small amount within a short period of time. However, interest rates for these loans are high, so it is imperative to look around for low-interest loans. However, only take this loan if it is truly necessary and there is nothing else you can do.

If you can see that a ‘bad credit’ loan or credit card could help you, contact us at Haebea Loans so we can find what the best options are for you.