Your credit record will affect every waking moment of your life. Bad credit scores will make it very difficult to even rent an apartment as most landlords will check your credit before renting to you. Buying a home or getting a mortgage must wait for several years until you have proven that once again you can be trusted. Your credit report is more valuable than money.
Getting a free credit report
You are entitled to a free credit report and you can go online and inquire about how to check your records. In the UK, there are three credit report agencies. The three agencies in the UK are: Experian, Equifax and Callcredit. Here is a website offering a free credit report from Experian: Creditexpert.co.uk. You are given a free 30-day trial and a free credit report as a temptation to commit you to seeking help from them. Most people say that Experian is the best one to check, but it is up to you to decide which way you want to go. Another free website is: Annualcreditreport.co.uk. They have no strings attached and they promise not to sell your financial information to anyone as some small websites may do.
One of the first things which you will find that your credit will affect is mortgage credit. You will not be able to purchase a home for at least three years after a bankruptcy or foreclosure. If you have a few collections, these may be able to be explained, but a major credit problem will hamper your ability to buy a home. You may be able to buy a home with a bad credit home loan, but the rates and points will be extremely high. Some lenders will want to put a pre-payment penalty and/or require a co-borrower on the loan.
Rentals and more
There are two important things in life that everyone needs: A place to live and food to eat. If you cannot buy a home, then you must rent. Renting also will be difficult and it will affected by your credit. You will have to explain very carefully why your credit is so bad. You will not be able to apply for a credit card either, and periodically, your present credit card companies will check on your credit. You may have your credit cards cancelled due to newly revealed information. If it is not cancelled, your card credit rate may be raised. No one will hire you in the financial field either with bad credit. Adverse credit will affect you in every aspect of your life. The best way in which to rebuild your credit is with a secured loan at your local bank.