As you move through life there will be many different times where your application for something will rely on a credit reference check being successfully returned. Whether you are applying for a mortgage, a rental property, car financing, a mobile phone contract, a new job application, or any other line of finance, such as a short-term loan, having a good credit score will help you out immensely. Although it is better to have a poor credit score than no credit history at all, it is still worth looking at how you conduct your life financially and look at ways to successfully create a life with good credit to help you build an improved future for you and your family.
When you start to focus on your credit score it is possible to quickly build up a positive and healthy credit file with some minimal changes to your lifestyle and your approach to your finances. It might seem counterproductive but lenders want to see that you are able to repay multiple credit accounts over a long period of time. Take out longer repayment periods to demonstrate that, and don’t be scared to have multiple accounts open at any one time (as long as you can afford to pay back the minimum amounts each month on each debt).
Despite this approach to multiple lending streams don’t apply for multiple credit cards over a short period of time, as this is a big red flag to lenders, and always ensure that you are not at your maximum lending amount on any line of credit, always owe a percentage. If a large percentage of your monthly income is going straight back out on paying off debt of any kind, this is also a warning sign to potential lenders, so the quicker you can get your debt to income ratio down, the better for your credit score.
It is possible of course to build a good credit score fairly quickly, and then to maintain that over a longer period of time. Never stretch your finances too far, always have the ability to pay back what you owe each month, as to miss any payment is a big black mark against your credit file. Wherever possible don’t use your entire credit limit, as this gives you a better chance of clearing debt in good time, and if you can pay off more debt earlier than planned, take that opportunity.
If you do have bad credit at this time but you have a full time job, you have a bank account and can afford to pay back loans and other credit products, you could still be able to seek short-term financial assistance from a payday loan provider with an ethical approach of responsible lending and the ability to help you out with bad credit loans. As long as you are aware that you will pay a higher interest than with a traditional loan, and that it is only over a short period of time, an adverse credit payday loan could make all the difference to you financially over the short-term, whilst you build a good credit score concurrently for your future.
