There are two kinds of people: the ones who are aware of their credit rating and the ones who are not interested enough to find it out therefore lose money. It is your life that your credit rating affects, and actually living with bad credit can result in numerous problems and stress as well. Therefore before you go ahead shopping for finance it is imperative to get your credit report that is available free at many agencies.
You might think you have a bad credit rating but that’s not the case. You can easily assume that if you never had credit before, you actually have a low credit score. It is true in most of the cases, but there are some aspects that can be beneficial to your credit score, like a car insurance that you are paying monthly, get charged interest on, can be considered as credit, just like a mobile phone monthly payment. If you ever used and paid back your overdraft, it can help building up your credit score, too, so don’t just try to guess.
You might think you have a good credit rating, and you might still declined credit. There are plenty of aspects of your credit score, and you can have an excellent credit, your credit file might still contain inaccurate information, or a credit that you already canceled or paid off. Moving home or starting a new job can also affect your credit rating, so it is not only about paying your bills. Your credit score can be also influenced by your marital status, your housing issues, if you are renting or are a council tenant. You absolutely need to look into the records in order to assume which financial options are available for you, they will be totally different if you have bad credit.
Find out how bad is your credit rating actually. There is difference between credit scores and categories to determine whether your credit is still considered to be all right or poor. So you have to know the exact score in order to esquire about any credit or bad credit consolidation. You can save a small fortune on the interest payments if you find out that your credit score is enough for a much more advantageous credit construction.
Look for options, many companies offer numerous products. You do need to shop around as long as you are not submitting applications with every company it is OK, but be careful, because submitting even an online application can reduce your credit score, just like every search on your account. All companies should let you know beforehand that they are conducting a credit search, but sometimes you will only find the information in the small print.