You are not alone in this league. Many of us have issues in their credit time to time. People spend more than they can pay back on time. Not paying on time is the main reason for not having a good credit score. Sometimes a problem happens which shake the person financial foundations, like a job loss or medical issue or an emergency in the family will end up facing bad credit score.
Whether you want any type of a loan or a credit card you require good credit score for better offers and low-interest rate. It makes the process way easier than usual if you have a good score.
Here’s what will happen if you have a low credit score. Example if you are applying for a credit card or any type of loan then the bank first go through your credit score and if you don’t have a good one they will simply decline your application without any prior notice or information. They will knock you back without any reason and without question, no matter about your documents are right or wrong the reason will be your bad credit score.
If your application have been declined once from the bank, we request you not to go to any vendor for a loan.
Many people have a habit of shopping and paying the bills through credit cards. Owning many credit cards and not paying back the amount you spent on time will affect your credit score.
Things to do when you have less credit:
- Stop applying for any type of finance for then. Wait for some period of time till then your score become better.
- Access all copies of your credit file and go through where things went wrong.
Repairing Your Credit Score:
Now you can start working to repair your credit history. Be assured that while you are making your credit don’t apply for new credit. There is many companies which can repair your credit and most people prefer the same because they have knowledge of the rules and legislation, they solve this problem quickly.
Things you can do yourself to repair credit:
- Contact The company: You can contact the company to remove your default listings from your credit file. Company may not agree to remove default listing but they have to agree for investigation.
- Contact The Privacy Commissioner: The privacy commissioner only looks at customer complaints, not commercial. It may take time but it worth of waiting.
- Contact The Credit Reporting Company: You can also contact the credit reporting company and ask them for an investigation to validate the default listing.
Credit problem checklist:
- If your credit application get rejected, stop applying for any other credit.
- Get your copy of credit file.
- Go through the wrong things happened that holding you back.
- Otherwise, wait until it happens naturally.