Advice and Tips // 25 February 2016
Having poor credit is one of the biggest financial obstacles occurring to people today. After the credit crunch, having poor credit has become a roadblock for many trying to finance a major purchase, whether it’s a car or a house. But how do you know if you have poor credit? We’ll tell you.
Many of us often do not realise that we suffer with a poor credit rating. When we think of people who have poor credit, the first image that comes to mind is CCJs and bankruptcy, but often this is not the only case.
Poor credit can be the result of many reasons. For example, many people suffer with poor credit simply because they have not yet built up a credit rating.
If you find out that you do have a less-than-stellar credit history, you may want to take steps to repair it. Repairing your credit history can be a long process, but will undoubtedly set you up in better financial standing later in life.
The first step in this process is checking your credit history. This can be done through a variety of means, although the most common is to use an online service, such as or . Both these services are free and provide a full credit report.
Once you have your credit history, you can identify risk factors that might influence your chances of getting approved for finance, and work to repair or remove them. This can take a long time, however, and if you need finance quickly, this might not be the best approach. Examples of this could be repaying any missed payments or settling outstanding credit.
For many of us, poor credit could be enough to put us off getting finance for a car. But we needn’t fear. There are many lenders who can help.
At Moneybarn, we specialise in providing car finance for people with poor credit. Our car finance calculator means you’ll be able to see exactly how much you’ll be paying each month, and what the total amount will be.