How to Improve Your Bad Credit Status | Aspire Money

Four Ways to Improve Your Bad Credit Woes

Having a bad personal credit rating can place a lot of strain on both individuals and families, and it can be very stressful and disheartening knowing that you may not meet all the lending criteria when applying for loans due to prior defaults or arrears. The good news is that it is possible to improve your credit rating. Here are our top four tips for putting an end to a bad credit history.

1. Seek Professional Assistance

If you have a bad track record for defaulting on credit card repayments or other unpaid loans it's always a good idea to talk to a professional. There are plenty of consumer credit counselors available that can help you get back on track. For many people, all that's needed is some better budgeting tips.

Also, knowing who to talk to when you can't meet your repayment obligations is very important. Reputable lenders are always willing to help clients who are struggling to meet their financial commitments. It's often possible to negotiate smaller repayment sums during periods of hardship, or in some cases, extend the loan duration to reduce the cost of regular repayments. 

You can talk to our friendly, professional team at Aspire Money to help put you in touch with the right people and start improving your credit rating.

2. Build a Positive Credit History

How to build positive credit?

  1. Don't apply for too much credit at once.
  2. Do apply for a variety of credit types.
  3. Do research the type of card that is right for you.
  4. Don't fall for a credit repair scheme.

3. Settle Your Debts

If you still have outstanding debts that you have defaulted on or are way behind in your repayments, it's important to contact the relevant credit provider. Making arrangements to settle your debts will not only take the pressure off you, it will also go a long way to improving your credit rating. 

4. Persistence and Patience

The final point to remember is to be patient. A bad credit rating develops over time and you can't expect an immediate improvement. By persevering and continuing to meet your financial obligations you'll be rewarded with a better credit rating and getting a loan will no longer be a major challenge. 

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