Repairing a bad credit rating

For various reasons, most people never bother about credit ratings, for some its because they know theirs is probably bad so there's no point finding out, for others; they're just simply not interested, that is until they need a loan, mortgage or a credit card.

Finding out can be beneficial; if you find that you have a good rating, it would help you make an informed decision as to where you should apply rather than risk being tricked into a bad credit loan or bad credit cards for that matter.

If you find yourself to have a bad credit rating, don't dwell on that either, it is a situation you can change over time:

The first step you should take after finding out you have a bad credit rating is to check the report for any inaccuracies, if there's any items on there that you disagree with, you should call the credit reference agency where you got the report from and dispute the item, more often they'll be willing to correct any mistakes.

Next you should tackle the items you can change in the short term; things like credit card and loan repayments are often reported on a monthly basis, as you pay back some of the money month by month, your credit rating improves by a few points. Likewise, missed payments can also reduce your credit rating by a few points.

If you've had glitches such as missed payment or late payments, these are easier to cover up, any credit rating points you loose this way can be regained within months. However, if you've had a default a bankruptcy, it will take a while longer for these items to come off your credit report, typically a bankruptcy takes 7 years to come off your record.