Whether you’re looking for a credit card, mortgage or even a fantastic finance deal on the car of your dreams, there’s no denying how important your credit score is. A healthy credit score can make life’s challenges a little easier and ensure that you get the best deals when you’re looking for credit.
However, just as a good credit score will help you, a bad credit score will hinder you. Sometimes you’re hit with unexpected expenses that you couldn’t plan or prepare for, and this can have a drastic impact on your finances, resulting in missed payments, defaults or even worse, bankruptcy.
If you’re in the market for a new car and your credit rating is less than stellar, you may hope that you can find a lender who is able to guarantee you get approved for car finance. Unfortunately, guaranteed finance just isn’t possible because your credit worthiness is assessed on an individual basis. Aside from there being no way any broker could guarantee you an approval, it’s actually illegal to promote such a product. You can find out more by reading: Guaranteed Car Finance Explained.
It’s important to understand how you can build a credit score if you’re just starting out. Simple steps like registering on the Electoral Roll and actually taking out a little credit will get you off the ground. There’s a common misconception that not borrowing results in a good credit score and the opposite is true. You need to show that you can borrow money and be trusted to pay it back on time, and the only way to do that is to get credit.
You can find several tips outlined in the infographic below, following this advice will ensure that you stay on the road to good credit.