If you’ve applied for a credit card or overdraft and have been rejected, don’t panic! There are still ways you can get credit. The first thing to do is work out why you’ve been turned down. When you know the issue, you can then find different ways to get a credit that can actually help to build up your rating in the future.
There are different avenues you can take, for example, Forex trading, where some traders will give you money without spending your own, a useful Kickstarter for anyone lacking good credit. However, you should consider it necessary to address poor credit and attempt to improve it quickly.
Don’t keep reapplying
Instead of racking up years of bad credit, if you’ve been rejected it’s best to leave it alone. Some lenders don’t actually tell you their criteria, so you may be risking another rejection if you keep reapplying. Once you’ve got one rejection on file, it counts against you when you apply again. If you get rejected again, then that’s two on file which makes the situation even worse. It’s best to give it a few months or check your credit rating to see why you’ve been rejected so that you can sort the issue out before applying again.
Get yourself a credit health check
If you’ve been told you have a bad credit rating, you can check out your full credit health check online for free. Companies such as Equifax and Experian offer free trials for you to check your credit report and score. In addition to this, companies such as Clearscore or Money Saving Expert can help you to get a credit report online for free too. It can help you to determine what’s causing the bad credit rating, so you can sort it out.
Find cards to help rebuild your score
Some credit card providers give you the chance to lower your APR if you manage to pay on time whilst others offer cashback on your spending. In addition to this, there are some cards that offer 0% for a period of time, which can help give you a respite from existing debt.
Get a prepaid card
Pre-paid cards can help to build your credit rating. You need to put the cash on it before spending instead of having credit. But it can help to improve your credit score. It’s available for everyone, and you pay a yearly fee to own it. If you can make the monthly payments, it can help to show that your credit is improving.
Try a second mortgage loan
Second mortgage loans or second charge mortgages are a secured loan on your home. It can help to raise your finances if you’re already a homeowner. The loan uses the equity you have in your home and turns it into a loan. As the loan is secured on your house, if you don’t repay it you may lose your home. You can borrow as little as £1,000 upwards meeting how much you have left to pay on your mortgage. It can be a great way for homeowners with bad credit rating to get money.
Always meet the repayments
If you manage to get some sort of credit when you’ve got a bad credit rating, it’s important to meet the repayments. Not doing so could create an even worse situation and spiral out of control. Ensure you can make the repayments on any type of credit or loan you take out. It’ll help increase your credit rating, so you’re not always stuck with getting credit.