If you have a bad credit score it can hinder so much of your life, especially if you are considering applying for a mortgage or other type of financial product or service. Here, we look at a few different ways in which you can begin to move away from bad credit and begin a journey where your credit score and financial life improve consistently over time. Of course, there are still certain types of financial products where you can get what you want with bad credit, such as through responsible payday loan lenders with short-term bad credit loans available, but you must be able to demonstrate you have the income and means to pay back within the set timeframe for repayments.
The first step to breaking out of the cycle of bad debt and poor credit is to check your credit file on a regular basis. You can view your credit files from the three main credit bureaus for free, and it allows you to make sure that there are no inaccuracies present that could impact on your credit score and future credit applications.
Another step away from bad credit is to move away from any joint bank accounts or mortgages you may have with a former partner. If you are linked to another person and they have bad credit, it can end up having a negative impact on your own personal credit score.
Always ensure that you are on the electoral roll for your current address. This improves your chances of being accepted for credit due to making it easier for credit reference agencies and prospective lenders to check you are who you say you are.
If you have any old credit cards or store cards that are no longer in use, as well as old direct debits still present on your bank account history, close them all down immediately. You need to physically contact the provider of a credit or store card to close down the account, just cutting it up and not using it again isn’t enough.
Most importantly, never miss a payment on any bill, credit card payment, store card payment, or mortgage. These can stay on your credit file for up to six years and have a big saying in how potential lenders view you as a prospective borrower. Once you have done all of this you can also begin to pay back your debt, regularly bringing it down to more manageable levels.
If you wish to take out a small payday loan with bad credit this is possible through certain responsible payday loan direct lenders. As long as you can demonstrate that you have a regular income, a bank account, and a willingness to pay back your debt and work away from adverse credit, there are those short-term loan providers out there that are willing to help you out. Always do your due diligence however, and choose a payday loan company that offers complete transparency of service and doesn’t hit you with hidden fees and higher than advertised interest on top of the initial lump sum loan.