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The Benefits of Using Bad Credit Loans to Improve Your Credit Score

Before we can improve our credit score we need to understand what it is that affects it. The most logical place to start is by getting a copy of your credit record from either one or both of the main credit bureaux in the UK and that is Experian and Equifax. This can be done online and is quite cheap and easy to do, but will give you an insight into the type of information that is available to prospective lenders when scoring an application for fast loans.

Once you have your most recent credit record you should go through it carefully to make certain there are no mistakes that are bringing your score down, if there are you can contact the relevant bureaux and ask them to correct them.

So what are the lenders looking for?

You address history is an important factor, the lender likes to see that you have not been moving about too much, they also like to see that you are on the electoral register. If you are not included on the electoral register you should change this as a matter of urgency just doing this will help to incease your credit score.

Lenders also like to see evidence that you have managed to make consistent payments to previous credit agreements either loans, credit cards and or a mortgage. If you have a couple or more years of consistent payments evidenced on your credit profile and have never missed any repayments, this will help increase your core. Having no previous payment profile i.e. not having taken any form of credit previously can have an adverse affect on your ability to borrow.

If you have any CCJ’s (County Court Judgements), Defaults or arrears showing on your credit profile these are all things that may have a negative effect on your credit score. If your profile shows any of these issues you should always do what you can to rectify them as soon as possible, and get them removed if that is an option.

So bearing all that in mind you can see why taking an adverse credit loan and ensuring that all repayments are met can help to increase your credit profile. Another method of improving your credit score is by using your credit card every month and repaying the balance in full, this illustrates to the lenders that you are sensible when it comes to managing your finances.

If you totally fail in getting a bad credit loan, there is one course of action left whereby you can apply for no credit check loans.  These are only short term loans but can be obtained by pretty much anyone.  Guarantor loans are available for those people with really bad credit scores.

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