If you fear you might have bad credit it can understandably make you want to bury your head in the sand; but similar to getting a medical check-up, whilst nerve-racking, it tends to be much better to know where you stand, so that you are in the empowered position to nip any issues e in the bud rather than let them spiral out of control.
Repairing your credit rating is a journey that can take some time; however, it’s entirely possible for anyone to turn their credit rating around; even if you have previously been bankrupt, or are soon to be discharged.
Similarly, it’s not just individuals that need to be mindful of their credit score – companies must protect and nurture their credit score as one of their most treasured assets.
Indeed, credit ratings just like customer service ratings are often publicly available online – as an example, if you were to wish to get an idea of how credit-worthy your insurance company was, a search such as Youi.co rating will bring up relevant results. If, as a company, particularly within the financial services industry, such as insurance, has an adverse credit rating it can be incredibly detrimental to that business.
With that in mind, there are two fundamental principles you must follow when looking to repair your credit status: first, find out where you are and then find a way to repair any damage that has been caused and start getting back on track.
- WHERE ARE THINGS NOW
The first step is to check your credit report, and if your score is less than desirable then you are in the empowered position to take immediate action to start repairing your credit score. The first thing is to check for errors; some credit reports contain many errors due to simple administrative error or complex issues such as identity fraud; be sure to check there are no late payments incorrectly listed for any accounts and dispute any errors you do find with the credit bureau.
- GET BACK ON TRACK
If you have missed payments, then stop worrying about this – the damage is done – all you have control over is the current moment which will directly affect what happens next; and the best thing you can do moving forward is to ensure your bills are paid on time. Sometimes, borrowing money can be a justifiable and viable way to consolidate your debts and get back on track
The trick is to get back on track by getting up to date with your bills, even if that involves negotiating payment terms so that no further damage is done to your credit file – and then stay on track. If you have a few red crosses, then the remedy to that is to create many more green ticks; there is no remedy in burying your head and letting things spiral no matter how tempting it may feel.
In summary, credit scoring is reasonably simple; you just want more green ticks than red crosses, and whilst it can seem a bewilderingly complex calculation that results in your final credit score – as long as you keep up with your financial commitments, your all important credit score should be fine.