When was the last time you started saving for a car? How about a deposit on a home of your own? There are things in life that are rather large in their purchase size and homes and cars are just two of those things. The one thing that both of those purchases have in common is that they can be bought on finance or with a loan from the bank, but if you want to get that finance, you need a good credit score.
One number can make or break your car application, your mortgage application and it can even prevent you from getting a mobile phone contract if your score isn’t high enough. It’s the literal definition of “computer says no”, as this one number can make a difference between a lender saying yes or no to your application. Considering that this is just a number, you can still spend time racking your brains to figure out: why do I have bad credit? You’ll then be figuring out how to up your credit score and improve it.
Lenders take information from your credit report to decide whether you are creditworthy enough to lend to in the first place, and the scoring system predicts whether you would be likely to pay back the money or not. But what do you do if your credit score is low? This infographic can tell you more and give you some idea as to why your score is poor in the first place:
Infographic Design By why do I have bad credit?