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Why do I have bad credit?

Compact Cars, Bridgend

November 24, 2016 at 1:07 PM

We are living in frugal economic times with the cost of daily living elevated to an all time high, yet wages remain low. This is why many individuals today find themselves with a bad credit rating. Below we will explain further why you may have bad credit, the ways in which you can improve your credit score and how you can access car finance with a bad credit rating. 

Why do I have bad credit?

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The term bad credit refers to the fact that in the past you have failed to make credit repayments on time, and that because of this it has been difficult for you to be approved for further credit agreements. Therefore, if you have failed to make repayments, or if you have not paid them back in full, you will have a bad credit rating. 

Bad credit and new lenders

If you do have a bad credit rating, then new lenders will be more reluctant to lend you credit, as they may believe that you will not make repayments on time, or not make payments at all. This may mean that they will not allow you to borrow money, and if they do, it will probably be at a higher premium. 

How to improve your credit score

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Don't despair! If you do have bad credit, the there are ways in which you can improve your credit score. The main thing to remember is that bad credit does not have to be forever. You can dig yourself out of bad credit. Make sure that any new credit agreements that you do take out are paid on time, and that if you can, pay them off early. By keeping up with repayments and keeping your outgoings to an absolute minimum, you can repair a damaged credit score. 

Car finance for those with bad credit

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If you find yourself without a vehicle and need one for work purposes, or simply to ferry the family around, then what do you do if you have a bad credit rating? One option is to take out a car finance deal. This option will allow you to make monthly repayments that are both affordable and manageable. Car finance also gives you a wide variety of vehicles to choose from. If you do take out car finance, then be sure to make those repayments on time to get rid of that bad credit rating. 

If you require a vehicle, but have bad credit, then we can help you. Compact Cars have a Pay As You Drivescheme that accepts low deposits. We welcome all applications, even if you have a bad credit rating. 

 


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