A bad credit rating can limit your borrowing options and make it difficult to get a loanor borrow quick cash. Bankruptcy orders, County Court Judgements and Defaulted payments can all leave a black mark on your credit file. If you miss a credit card payment, direct debits for energy payments or other commitments, you could find a mark against your name that will cause you problems. The first time you will know there is a problem will be when you apply for credit, such as a loan, and get turned down. This then leaves a footprint on your credit file, which will make things worse. The only type of credit available to people with a bad credit rating is that with a high interest rate. This type of borrowing is severely limited at the moment.

You can try the following to improve your credit rating, things will improve slowly but surely if you follow our advice carefully.

• Make sure that you are on the electoral roll.
• Apply for credit that you are likely to get such as a payday loan.
• Show lenders that you are a responsible borrower. You could do this by getting a credit card with high interest or a payday loan. Borrow small amounts and pay them back on time.
• If you pay off a county court judgement or a loan make sure it is removed from your credit file. Obtain your credit history from the ratings agencies and make sure everything is correct and up to date.