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7 Things You Should Not Do With Bad Credit

Bad Credit spelt using scrabble

Bad credit can be a nightmare.

Credit history stays on your credit report for seven years, and while you are waiting it can be hard to keep a good credit rating up in order to not to make your credit rating consistently negative. Here are some things NOT to be doing while you are waiting for that bad credit to be wiped from the system!

  1. Don’t write yourself off! Although you might not be able to go to major lenders for deals such as phone contracts and car leases, there are companies who will be willing to consider lending to you even with bad credit. If you keep up on these payments, you are improving your credit score!

  2. If you have set payments each month make sure you pay them! If you are struggling financially, contact your lender and discuss your situation, don’t just miss payments with no explanation.

  3. Don’t take on loans you can’t repay, or with high APR rates. This will often make paying back the loan impossible, and will make your credit rating even worse.

  4. If you are looking for work, do not hide your credit rating from your future employer. Many employers check credit reports, if you are open and honest about your bad credit report your future employer is much more likely to consider you as a serious candidate. Often there are genuine reasons for people having bad credit ratings. Remember everyone is human and being honest is the best policy.

  5. Don’t worry about a credit rating ‘blacklist’. There is no such thing, and this is a myth. There is no blacklist of banned people, and every lender scores you differently. This means that just because one lender has rejected you, does not mean others will not accept you!

  6. Declined applications ARE NOT on your credit report. So, if one lender declines you, this cannot be seen on future applications. Do not let rejections put you off applying to different schemes.

  7. Your medical history is not on your credit report, so if you have any kind of long term health issues lenders will not be able to see this and can’t turn you down because of it. Do not let medical worries put you off applying.