Diagnosis: Poor Credit Rating

I think I have a poor credit rating

Being diagnosed with a Poor credit rating can cause some concern. However, despite it not being the best credit rating available it can still be repaired, and will take less work than if you have a Bad credit rating. So what does a Poor credit rating mean?

If you'd like to view other credit ratings, these can be found in our Diagnosis Centre.

What is a Poor credit rating?

On the credit rating scale, the Poor credit rating sits between Bad and Fair. It's normally a state of transition, where someone has had a history of bad credit, but has begun taking steps to either repair their file or end the bad behaviour that has affected their file. It can be frustrating if you've begun taking steps to fix your file, but moving from a Bad to Poor credit rating shows you're on the right track.

What does it mean for me?

A Poor credit rating will mean the best APRs are not available to you, so you'll need to be careful when applying for some form of credit. It's also important that you don't make lots of applications in the hope of getting a good deal, as this can further damage your credit rating. Note that applying online to Creditplus to determine your options, will not impact your credit rating. You can read more about our soft credit searches here.

Because we have a strong focus on ethical lending and put our customers at the core of what we do, Creditplus may still be able to help with your car finance journey, even if you have a poor credit rating. Check out our Credit+ Guarantor Loans that 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.

What does it mean to creditors?

Creditors will look at your Poor credit rating and see both positives and negatives. The positive is that the history of bad behaviour is slowly fading and that you don't have the worst possible rating. The negative is that the history is still recent enough to warrant caution when lending money.

What does it mean for my car finance application?

The Poor credit rating means you won’t get the best APR rates available. To help reduce the cost, you may want to try and pay a larger deposit as this will reduce the cost of your monthly payments. You may also what to consider applying for a guarantor loan, if you have a family member, friend or co-worker who'd be in a position to be your guarantor. Check out our Credit+1 Guarantor Loans page to know if you're eligible.

How can you fix a Poor credit rating?

To begin fixing your Poor credit rating, you'll want to look at the Causes section for a list of issues that can negatively affect your score. Following this, please visit our Credit Clinic Treatment Centre to discover ways in which you can repair your file. Finally, visit our Resources page to find free, impartial advice from several debt charities.