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Three Bad Credit Myths You Shouldn’t Believe

Credit

If you’ve been told you have bad credit, you might believe that a range of financial options are closed to you. From acquiring a loan to debt consolidation, the idea of obtaining these can seem out of the question if you have a poor credit rating.

However, the reality is quite different. Here are some common myths we hear all too frequently:

I’ve never borrowed, so I must have good credit

Many believe they automatically have a good credit rating because they have no borrowing history and have never been in any kind of debt. Unfortunately, this is not the case.

A credit score for individuals is built up by a combination of factors but one of these is lending history. This provides prospective lenders with information on how likely the borrower is to adhere to the agreement and repay the finances provided to them. Therefore, some degree of lending – and repayment – needs to take place to start building a credit score.

I must clear my debts to repay my bad credit history

Although repaying your debts is a good move, making the repayments on existing debts is often a better way to improve bad credit. One of the worst things you can do to jeopardise a credit score would be to either be late with or miss the repayments.

I must have bad credit due to having lots of debts

Actually, this is quite the opposite. When repayments are made on existing debts – on time – the credit score on record is likely to be pretty good. To sustain this score, all you need to do is to keep paying each month.

I have bad credit – can you help me consolidate my debts?

If you have bad credit, then we will certainly hear your case before deciding whether to accept your loan. Bad credit isn’t automatically a disqualifying factor with us so get in touch today and find out if we can help you with debts.

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