Bad credit is a term used to describe a poor credit score. Your credit score is a review of your previous credit borrowing and how well you repaid it. If you have not repaid your credit on time then your credit score will be low and companies will be unwilling to give you credit.
How do you end up with a bad credit score?
• Missing or making late payments
• Having CCJ’s
• Having no credit history
• Not being on the electoral roll
You may need to apply for credit for a number of things in the future and a bad credit score could prevent you getting mobile phone contracts, credit cards, loans and mortgages.
How do I find out my credit score?
You should contact the credit reference agency – they are legally obliged to get back to you within 7 days.
How can I improve my credit score?
The best way to do this is to build a credit history over time;
• Make sure you are on the electoral roll
• Pay your bills on time
• Don’t keep applying for credit as every application is logged on your file
• Always tell the truth when applying for credit – inconsistencies in credit applications will affect your credit score
Applying for a loan from Provident is another great way to try and improve your adverse credit rating. We offer loans from £100-£500* and, because your friendly local Agent will discuss your application with you and will make sure that you only borrow what you can afford to repay, it is much easier to keep on top of your weekly repayments. What's more, as we share your repayment information with credit agencies this will help you improve your credit score.
* subject to affordability
