Skip to main content

5 Ways to Avoid a Bad Credit Record

Having a bad credit record can severely impact on your life in a range of ways. You can experience difficulty finding a place to rent, as well as having applications for credit cards, loans and even phone contracts constantly knocked back. Preserving your credit record is particularly important if you are considering a home loan in the next few years. Here are 5 simple ways to avoid a bad credit record.

Create a Budget

Making sure that you have an accurate and detailed budget will help you to stay on track with all of your payments and expenses. You may need to spend several hours assessing your income and expenses in order to have a clear idea of what you have available for savings and bill payments. Try and allocate a saving account for emergency situations, and aim to have 3 months of your expenses saved at all times. This will cover you in case you temporarily aren’t able to earn your normal income.

Keep Your Details Up-to-Date

Ensuring that you stay up-to-date with any change of address and contact details will allow creditors to contact you directly. You can inadvertently damage your credit record by forgetting to update your change of address, and as a result miss any bills and outstanding payment notices that are being sent to your old residence. It also allows any creditors to contact you promptly in the event of a problem, which can save your credit record from receiving any unnecessarily damaging records.

Don’t Max out Your Cards

Try and stick to the minimum spending on your credit cards, and always pay it back as punctually as possible. Try not to max out your cards, as it increases the risk that you may not be able to make a repayment if your circumstances change.

Contact Your Creditors

If you’re experiencing issues making a payment, make sure you contact your creditors directly. You’d be surprised just how understanding they can be when given plenty of notice. Quite often they will make special allowances for cases of financial hardship, especially if you can present them with a structured plan of when you will be meeting your payment obligations.

Don’t Ignore the Problem

The worst thing you can possibly do is to ignore any credit issues. Being late on payment or worse, not paying at all, will do almost irreparable damage to your credit record. As soon as you are struggling to make your payments, you should contact your creditors to organise an alternative arrangement. If you aren’t comfortable doing this, an experienced debt solutions provider such as Fox Symes can negotiate with your creditors on your behalf. They will also assist in all kinds of debt help, from consolidation to personalised budgeting advice.

Preserving your good credit record should always be a financial priority. With the devastating impacts that a bad credit rating can have, your quality of life can be seriously reduced from even the smallest indiscretion. If you think you might have trouble meeting your repayment obligations, consider enlisting the help of professional debt solutions specialists.

Comments

Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

The Top 4 Reasons People Fail at Budgeting

Budgeting isn’t easy, and many people experience difficulty trying to get the most out of this essential financial tool.  While the concept may sound simple, adhering to your budget could be a lot harder than you might think.  To help you experience success, here are the top 4 reasons why people fail at budgeting .

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

How to Raise Money in Tough Times

The economy is in a pretty hard place for everyone at the moment. Each day, it can seem as if everything’s getting more expensive , while the amount of cash in your pocket just isn’t matching up to this change in lifestyle. Rather than sitting back and doing nothing, it makes sense to tackle the problem head on by looking at clever ways to get more money coming in to beat the ailing economy.