Bad Credit Rating

Bad credit rating depicts a person's poor credit status. Such person is not eligible to get financial help from any Bank.

Bad credit rating occurs due to

Bad payment history - not paying the bills on time or never paid the bills.
Bankruptcy
As a defaulter or having County Court Judgments (CCJs)

Before approving loans, lenders such as bank and credit card companies, determine whether you have ability to pay it back or not. They check your credit credentials. Credit Reporting Agencies gather information provided by borrower and make it available to lenders in the form of credit file. Credit file contains your personal data and detailed account information including credit limits and payment records. This record is maintained for 7 or 10 years. If you have a good credit file, your credit rating will also be good. Bad credit rating put a blemish on person's financial record. At the time of this economic slowdown, bad credit rating can abort your future plans of borrowing money.

But, this doesn't mean that you can not get any financial aide with bad credit rating. Financial companies offer money to people with bad credit rating with comparatively high interest rates. This can be secured or unsecured depending upon terms and conditions. That means, you will be giving extra money than the normal ones. But, this can help you to improve your financial situation. You can smartly make use of competition among financial companies to get the best affordable loan.

Caution : You must be aware of fake financial institutions. They lure you with lucrative offers and end up with galloping your hard earned money.

To improve your bad credit rating :

Do payments on time
Pay the debt
Return extra credit cards
Make a balance between your earning and expenditure
Sort out problems, if bad credit rating is due to wrong information in Credit file

Summary : Even with bad credit rating, a person can qualify for a loan with strict terms and conditions. But, it is always better to maintain a good credit report.