# Poor Credit Rating? Here Is How to Fix It

Having a poor credit rating can really have a powerful impact on your life, and most certainly on your ability to obtain any form of credit. If you have a poor credit rating then it is time that you took action to repair it, a long process which will certainly not happen overnight, but one which can help you enormously when it comes to managing your finances in the future. Fixing your credit rating can form part of your new financial management routine and in some cases you can even fix your credit score and save money too as a result.

The first step when trying to fix your credit score is to look at what it is, and look for any penalties or searches which you may have on there. You can do a quick and easy credit score check online, to help you understand more about it. When you look thorough the detail of your score, check meticulously to ensure that there are no errors or incorrect information on there. In some cases you may have been hit with a penalty for something which you haven’t done, if so you will need to contact the financial ombudsman to have it corrected.

Dissociation

Very often people have a poor credit score because of their ex-partner or a friend who they are financially tied with. There is such a thing as a financial marriage, and if the other half of this marriage has poor credit or mismanaged debts, you will be penalized as a result. If you have recently broken up a business or a relationship, you need to financially sever all ties, in order for your credit score to slowly increase.

Unused Cards

If you have unused credit cards, store cards direct debits or mobile contracts, you will need to cancel them. The reason for this is because lenders will consider how much credit you have access to, and although you know that you won’t be using the credit on your cards, the lender will not. Cancelling these will not only increase your chance of getting credit but it will also gradually increase your credit score.

Managing Debts

If you do still have credit cards or outstanding loans which are in good standing, you must ensure that you manage them with perfection. This includes no late payments, no additional borrowing and ensuring that you pay the full amount on your card rather than just the minimum payment. The idea of improving your credit rating is about showing that you are a responsible borrower and that you are capable of managing debt without any issues. Continue in this vein and over time you will see that your credit score will slowly improve.

The second that you realize that your credit score has decreased, it is time that you take action.

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