GP: Why Do I Have Bad Credit?

Having bad credit isn’t the end of the world but it certainly isn’t an ideal situation to be in either. A poor credit rating can have an impact on the simplest things such as gaining any form of finance to purchase an item, taking out loans and credit cards and even something smaller such as a store card can be impossible to gain. As the amount of finance agreements we apply for grows, we are far more likely to end up in a negative situation.


financeFinance is something that we depend on to allow us to own the essentials and often to simply meet every day requirements. We are quick to turn to credit cards and credit agreements thanks to the increase in the cost of living and bills and financial obligations swallow up our income. All is not lost; if you are suffering from a bad credit rating then you can follow a program to rebuild credit.


As a growing number of people are suffering from the same problem there are a number of organisations on hand to help offering suggestions to help resolve the problem.


What are the typical causes of a bad credit rating?


Late bill payments are the most common cause of a bad credit rating. Even not making payment for a few days past the initial due date can cause a black mark to go against your name, which then leads to you being considered a bad borrower.


This is also the cause when repaying debt. Anyone that has money owing needs to repay the debt within the allocated time or the same happens as late bill payments.


Credit cards need to be paid off in full eventually, most people only cover the interest but the outstanding amount due needs to be cleared which often doesn’t happen.


Many think that a bad credit rating simply comes from not fulfilling financial obligations but not borrowing at all can mean you have no credit rating which can be just as damaging. Lenders will not see you as a good borrower as they have no idea whether or not you will make the repayments.


What can you do to repair your credit rating?


To repair your credit you need to in fact borrow again and show that you are able to make repayments within the scheduled time and return the investment in full. You may be limited on where you are able to borrow from if you have a bad credit report but credit cards are normally quite simply to achieve.


Spending frequently on them, but at an affordable rate and then repaying the money spent will give the credit report a real boost and improve your score.


This article was written by Amanda Walters, an experienced freelance writer and regular contributor to Huffington Post. Follow her here: @Amanda_W84


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