If you’ve been struggling with debt problems for some time, your credit rating, also known as your credit score, will almost certainly be somewhat low at the moment. This is an issue that will need to be fixed at some point in the future, but for now you probably feel as though it’s not your highest priority.
For those people who are coming to the end of their debt solution programme, rebuilding a credit score is gradually becoming a possibility. There are ways to improve it, although it can be a slow process. One of the most common ways is to use a credit card once or twice a month, and to pay off the full balance at the end of every month.
Another route to improvement lies in checking your credit report and fixing any errors that may appear on it. If you make several applications for credit at the same time, this can have a negative effect on your score. If you’re rejected for a loan or credit card, it’s best to avoid making other applications in the same period.
Finally, it seems obvious to say that paying your household bills and credit card repayments on time is a must. If you’ve just finished a Debt Management Programme (DMP) or any other programme, your credit score can start to recover as lenders see that you’re determined to keep your finances organised.
If you’d like to find out more about keeping your credit rating healthy after a debt programme, speak to the team at Bluesky soon.