Diagnosis: Bad Credit Rating

I think I have a bad credit rating

Realising you have a Bad credit rating could make you worry. Whilst it's not an ideal situation to be in, you can still take steps to fix your credit file. But what does a Bad credit rating mean?

If you'd like to look at a different credit rating, you can find them all in the Diagnosis Centre.

What is a Bad credit rating?

A Bad credit rating means that your credit file has a large number of negatives attached to it. For a full list of what can negatively affect your credit rating, visit the Causes section of the Credit Clinic.

What does it mean for me?

When you have a Bad credit rating, the options you have for finance become more limited. Interest rates are generally higher and you'll end up paying more money in the long run. Some companies will still provide credit to people with a bad credit rating and we work with some of those lenders, but it's important to be careful and make sure you don't take out finance unless you know you can afford it.

Being an ethical lender, Creditplus may still be able to help with your car finance journey if you have a bad credit rating. Our Credit+ Guarantor Loans allow you to apply for car finance with the help of a family member, friend or co-worker who agrees to cover the monthly repayments, if you are unable to meet them - hence increasing your chances of approval. 

What does it mean for creditors?

The Bad credit rating means that you're a risky prospect when it comes to finance. Many lenders will avoid applications from those with a Bad credit rating as the risk outweighs the gain. However, there are some specialised lenders who will provide credit to those with a Bad credit score. The interest rates are generally much higher in a bid to balance out the risk.

What does it mean for my car finance application?

If you are able to provide a guarantor to help with your car finance application, Creditplus may still be able to help you with your car buying journey. You can read all about our Credit+1 Guarantor Loans to know our eligibility criteria.

We also work with a number of finance companies who provide Bad credit car finance. When you apply, we'll conduct a soft search of your credit file, then match your circumstances with a suitable lender. A soft credit search, also known as a quotation search will not impact your credit file, find out more about our soft credit searches and our ethical lending policy.

How can you fix a Bad credit rating?

To begin fixing your credit rating, look at the Causes section for a list of issues that can negatively affect your score. This will assist you in gaining a better understanding of what has actually damaged your credit profile and help you prevent further damage in the future. Following this, please visit the Credit Clinic Treatment Centre to have a look at some suggestions on how you could repair your profile.