Friday, April 29, 2016
Why You Shouldn't Beat Yourself Up Over a Bad Credit History
There are all sorts of reasons why you might have gotten into trouble with credit in the past, and for many people, a bad credit rating is a painful reminder of bad times in their lives. We are often told about the negative impact a bad credit rating can have, for instance making it more difficult to rent homes, to get the credit we need to buy things like cars, or even in some cases making it harder to get a job. While all these things are true, there is no need to feel like you are worth less as a person because you have had debt problems in the past. Instead, it is better to take stock of your situation, look at the things that are still available to you if you do need credit urgently, and also try and build up a better credit rating for the future.
What If I Need Credit While My Credit Rating Is Bad?
One of the biggest problems when you have poor credit is that if you have a financial emergency like an unexpected bill, and you don't have savings to cover it, you don't have the same options for using loans and credit cards as other people. However, there are still some financial products available to people who have a bad credit history. These tend to have less flexible repayment schedules, higher interest rates and lower limits, meaning they wouldn't be appealing if you had other products you could get with your credit history, but they can see you through an emergency situation without causing too much expense down the line (provided you repay as agreed), and making the repayments reliably will help towards improving your credit rating. Sites like ukhomeandpersonalloans.co.uk can help you find the kind of loans that are available in your situation.
Building Your Credit Rating
The problems you are experiencing because of your bad credit rating needn't be problems you'll have to suffer with for life. You can, over time, turn your credit rating around, but this requires you to actually get, use and repay credit. While it may be tempting and easier to just try and live without things like credit cards, your credit rating won't improve if you aren't using any credit. Start off with a credit building credit card with a low limit, make sure you use it, and pay it off in full every month. That way you will avoid fees and also start building a history of consistent and reliable repayment.
Avoid Bad Habits
You are probably aware of how you got into a bad credit situation in the first place, so rather than
feeling bad about it, use it as a learning experience so you can avoid bad habits or avoid getting into circumstances where you can't meet repayment arrangements with credit again.
Managing money, and especially credit, is a skill we're not born with – we have to learn it as adults trying to get on with our lives. If you have slipped up in the past, don't be ashamed – just take the steps to address it and learn how to use credit responsibly.