Guess what! Having a bad credit score is not the end of the world. In fact, a bad credit score can be turned around and it is not as hard as you think. It just might take a bit of time. There are several things that you can do to improve a bad credit score, and today we are going to take a closer look at each of them.
What is a Good Credit Score?
Many lenders do not just look at your credit score and make a decision based on that nowadays. Instead, a broader overview of your financial management is taken into account. That being said; there is still such a thing as a bad or good credit score. For instance, at TransUnion, a good credit score is 4 out of 5. A good credit score with Equifax is over 420 out of 700 and a good credit score with Experian is over 880 out of 999.
In the UK there is no list of “blacklisted individuals. Instead, each lender will rate an individual on the management of their account. If you have a poor credit score, this can affect your future borrowing opportunities, especially if you are considered high risk. The UK Money Advice Service provides sage advice on how your credit rating can impact on your cost of borrowing. The number one reason so many Brits want to improve their credit score is to ensure that their borrowing costs are kept to a minimum, immediately and in the future. So, let us get to work on improving your credit score.
How to Improve Your Credit Score
Improving your credit score is more about diligence and dedication than it is about “hard work”. If you are serious about turning your less than perfect credit score around, you can try the following 5 tips and expect a positive outcome. Of course, you have to be dedicated to the process and diligent in your efforts.Continue Reading