A bad credit rating can have a serious impact on your financial situation. When it comes time to apply for a loan, we are told to shop around to find the best deal for us, whether that’s the best rates or a loan with flexible options. But shopping around should be done long before you make any kind of application, because several new enquiries can give you a bad credit rating.
Every official enquiry you make with a bank will appear on your credit rating. So if you have approached 5 different banks in your quest to find the perfect loan, you will have 5 different enquiries listed. By the time it comes to the approval process, you will have a bad credit rating and may be denied your loan. Like anything on your credit rating, these enquiries will remain listed for the next 3-5 years.
Avoid a bad credit rating with these tips:
Avoid excessive credit enquiries
When you are looking for a loan, do your own research first. Use the internet to compare banks, loans and deals you are interested in and create your own shortlist. When you go in to see each of the banks on your shortlist about a loan, have a list of questions ready. Be sure to ask the questions on your list and if the bank asks you for your driver’s licence or detailed personal information, let them know you are simply making enquiries at this point. If you are declined it is best to wait a few months before applying again.
Pay your bills on time
Most bad credit ratings are caused by people not paying their bills. If you know you are going to have a week when you can’t afford your repayments contact each company you owe and let them know. More often then not they will extend your deadline and make allowances for you. If you have already missed your repayment without letting the business know, you should call them to discuss your situation. The worst thing you can do is leave it be in the hope it will just go away. Once your repayment is 6 months overdue it is listed as a default on your bad credit rating and will remain there for up to three years.
What can I do to remove these negative credit listings?
The only thing you can do is wait. After 3-5 years, depending on the type of listing, it will automatically come off your bad credit rating. In the meantime, be sure you keep up with all your repayments and bills and avoid making any more enquiries.
I have a bad credit rating but need a loan now
If you have a bad credit rating but you are in need of finance, there are options available to you. Positive Solutions Finance is a company specialising in finding positive financial solutions to people with a bad credit rating. Positive Solutions Finance does not lend itself, but rather calls on a number of affiliated lenders to find the best loan for you. Each affiliated lender is outside of the traditional sphere and focuses on lending to people with a bad credit rating, people who have finished a debt agreement and discharged bankrupts.
Get your finances back on track today
To get your finances back on track call Debt Rescue today. We have a number of positive solutions to curb your bad debt and improve your finances.