Why Can You Have A Bad Credit Rating?


There is no denying the fact that credit rating plays an important role when it comes to any financial requirements. The borrowing and spending behaviour of a person determines his credit score. However, it is important to note that different lenders make use of different strategies to rate the credit score of a person. In addition to that, the acceptance for rating among different lenders is different. You should always try to maintain a good credit rating with a good credit history so that you do not have to experience any problem when it is time to borrow money from lenders. Well, there are many people that experience bad credit ratings, and there are several reasons for the poor rating. Take a look at few of these reasons.


  • Bad Behaviour– It is important to note that bad behaviour can often create a bad impact on the credit rating. If you fail to stick to the terms and conditions of your original credit agreement, it will get reflected in your report. For instance, missing credit card payments can create a negative impact on your report. At the same time, even if, you make minimum payments on your credit card, it can create a negative impact on your ratings. This is because lenders will feel that you are struggling hard to repay your debts. If you think that you are struggling with your finances, and it is difficult to repay your debts, you should contact your lenders at the earliest. You can inform them about the situation, and ask for help. This can help you to handle debt problems while your credit rating might not be affected severely.
  • No Guarantee With Good Behaviour– There are many people who think that by never borrowing money, they can have a very good credit rating. However, this is not true always.  In fact, it is important to note that if you have never borrowed money in the past, you do not have a credit history or the history is very short. As a result, it can be difficult for a lender to judge whether you will be able to repay the loan borrowed. Consequently, you can often be turned town by lenders, even if, you think that you are comfortable enough to repay the loans on time.  In addition to that, it is important to remember that people that borrow money in smaller amounts and repay their credit card bills each month will experience greater difficulty compared to customers that have long-term debts.
  • Knowing The Reasons– With a bad credit rating, there are chances that you will be rejected. In such a case, it is important to ask the lender the reason for rejection. Creditors will give you reasons that can help you to be clear. If you think that you have been turned down for no reason, you have the right to supply more information for strengthening your application. You should check your credit file, and take essential steps to improve the credit rating.

There is nothing to feel bad because the market is flooded with lenders that will be ready to lend you money irrespective of your credit rating. You will have to research well so that you are successful in finding the right lender. On the contrary, you should also try to find out the ways through which you can improve your credit rating. http://www.justbadcredit.co.uk/ can help you in this context. You can get tips and ideas through which you will be able to concentrate on improving your credit score, as a whole. Thus, you will not experience any difficulty in borrowing money with a good rating.

Bio: Pete Campbell is a Marketing Strategist for http://www.justbadcredit.co.uk/. He’s an expert in all aspects of home & family lifestyle and offers advice on how to make the most of your home.

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