Bad Credit Tips
Having bad credit can be really annoying and stressful, check out the bad credit tip list below to avoid getting bad credit in the first place!
Get on the electoral roll - If you're not on the electoral roll, it's harder to get credit. You dont have to wait for that yearly electoral roll reminder to come through the post, you can sign up immediately on the About my vote website (www.aboutmyvote.co.uk ).
Reduce the amount of credit searches on your file at any one time, lots of applications in a short space of time will reduce your credit score. Space out any credit applications over time to avoid this. Check the small print on any offers you may receive through the post for catalogues, credit cards etc, many will carry out a credit check immediately and by signing the application you are giving consent.
Moving address a lot also reduces your credit score, so make any really important applications prior to moving. If you move around a lot due to your employment, consider using a P.O. Box address or perhaps parents address for correspondence - but do not lie on credit applications.
Keep up all monthly payments and never be late (or worse miss them entirely). Always strive to make at least the minimum repayment amount on any financial products. Even if you're really struggling, don't default or miss payments. A couple of missed payments or defaults can affect your credit for years to come. It is not unknown for a missed credit card payment of less than £50 to cause a mortgage application to be rejected 12 months later!
It may be a cliché, but the "contact your lender" advice is sound. Coming to an arrangement or changing your repayment schedule is far better than you defaulting.
For credit cards, the simplest method to stay out of trouble is to set up a Direct Debit to repay the minimum repayment every month. Always try and pay extra if you can to reduce the balance quicker either online, by post or even over the phone - but at least you know the minimum payment will be made avoiding any nasty charges or bad credit.
Cancel any unused credit cards, debts and accounts you may have. Access to credit, even if it's not being used, can count against you. Lenders decide how much debt you can afford partly based on income and existing credit. If your file shows access to more credit than your income can support, you may be rejected even though you are not using it!
Use any savings you have to pay off debts. It is unlikely the interest you are receiving on savings is more than the interest you are paying on your debts, in fact its impossible! Use any savings to reduce total debt, start with the most expensive debt first (the highest interest rates).