What causes someone to have a bad credit rating, and what can they do to fix it?

If you’ve applied for credit and been unexpectedly rejected then this may have something to do with your credit rating. A credit rating is basically an overview of the way that you have managed your money and credit in the past. It is data that is made available to lenders by credit reference agencies that will reveal information such as how much you’re borrowing, how well you’ve made repayments and how often you’re applying for credit. Lenders use their own rules to turn this credit rating data into a credit score, and then use the score as a means to decide whether to lend or not. A poor credit rating may not seem like the end of the world but it can have an impact in many ways. For example: Rejection of credit card loans and applications Only being offered high interest credit Higher insurance premiums Being unable to take out a mobile phone contract Difficulty getting a car loan Being denied business start-up finance What causes a bad credit rating? There is no single cred
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