Finding out that you have a bad credit score can be quite a shock!
Immediately you are overwhelmed by all these questions, like “Does this mean I will never get a loan?”, “How will I ever buy a house?”, “Am I doomed for life?”.
A bad credit affects your lending criteria
Somewhere along the line, you have made some mistakes with credit and you are now coming face to face with the consequences.
Perhaps you made a few late payments or defaulted on payments. Maybe you have too much standing debt – whatever the reason, you have proven to be an unsuitable candidate to receive credit. If you are guilty of making late payments or something along those lines and you have been experiencing financial difficulty, you need to contact your lender as soon as possible.
Inform your lenders
If you ever come to a point in your life where you are unable to make payments, you have to contact your lenders before the issue escalates.
Many people choose to avoid their lenders when they realise that they cannot make payments. If you do this, it will affect you negatively, they will most likely prefer to come to an agreement with you, than risk losing their money.
Rebuild a positive credit score
You will just have to work at it and start as soon as possible.
You are able to change a negative score rating if you start working on settling your outstanding debt and paying debt repayments on time. This includes paying personal loans and credit cards on time, every time. This will allow you to slowly build up a more positive credit score in the future.