Having bad credit is nothing to be ashamed of. Many people go through this financial hardship at one stage or another in their lives; it can be caused by something simple such as missing a bill or loan payment, and it can be very hard to recover from. There are always things you can do to boost your credit score, but you might not know what some of them are. Without further ado, let’s take a look at some of our best finance tips you shouldn’t ignore if you find yourself struggling with bad credit.

Know your credit score

You may think that you have bad credit without actually having a negative score. Some financial institutions prey on the idea that people think their credit is worse than it actually is, so you should make sure you know your credit score intimately. You can use a number of free services online such as Experian, CreditKarma, or ClearScore to find your rating, so make sure that whatever decisions you make, you’re making them from an informed perspective.

Look into bad credit loans

A loan might be the last thing on your mind if you have bad credit, but it can actually be a huge boon. Seeking out bad credit loans can help you to rebuild a poor credit score; if lenders see you’re making regular repayments, they will be more favourably inclined towards you in future. Of course, this means you will need to be able to make regular repayments, so as ever, a loan is not a good idea if you can’t commit to a schedule. If you’re in a good financial position, however, a bad credit loan is a good thing to think about.

Pay bills and loans on time

It might sound facetious and easy to say, but paying your bills and loans on time will go a long way towards improving your credit score. Missing payments negatively impacts your rating, but making them on time helps you immensely. You may think that paying off your loan all at once would stand you in better stead, but this is actually not the case. There are some instances in which paying off a loan will actually hinder rather than help your credit rating, so just try to make prompt and regular repayments if possible.

Put yourself on the electoral register

While there’s a good chance you’re already on the UK electoral register, it’s worth checking this all the same. If lenders can’t easily find your information, then they may lose confidence in you. Being on the electoral register is a quick, easy way to potentially boost your credit rating, and it’s completely free. You can check whether you’re already on it and add yourself if not. The process usually only takes around a week or two, and the benefits vastly outweigh any inconvenience.

Draw up a strict budget

If you still find yourself in a tricky financial situation even after taking out loans, then one way to help combat that is to draw up a budget. Having an idea of exactly how you’re going to spend your money can help you not to make any unnecessary purchases. Your budget should take into account everything you’re earning and everything you’re spending. Don’t miss anything out; you’re only being dishonest with yourself if you don’t incorporate certain expenses or incomes into your budget.

Take out a credit-building loan

There are certain kinds of loans out there that are specifically designed for people with bad credit. These loans are unique; you don’t receive the balance of the loan at the beginning, but rather at the end, when you’ve made all the repayments. This allows you to commit to making regular payments on a loan, which can be incredibly helpful for rebuilding your credit score. These loans can take the form of a credit card or a regular loan, so make sure to look out for them.

Look into your specific lender

Before you take out a loan or a credit card, you should know what your specific lender’s terms look like. Lenders have different requirements when it comes to the people they approve for loans, and sometimes, having a good credit score in one lender’s eyes won’t necessarily mark you out as a good customer in another lender’s view. Read the terms and conditions of each loan very carefully to see what your lender is looking for, and improve your credit rating in that area.

Don’t share accounts with someone else with bad credit

Splitting from a shared account with a partner or housemate who has a bad credit score could be a serious boon for you. Having a shared account with someone who has bad credit can reflect negatively on you as well, as this will factor into a lender’s check. Open up a solo account for anything for which you need a loan, because a shared account is bad news. You should also consider talking to your partner about their own credit score so that this doesn’t come back to bite you in future.

Check your addresses

Sometimes, having an old or unused address on an account - say, for a mobile phone contract, or a bill - can be a serious detriment to your credit score. It’s worth going back over your contracts and making sure all of the information on them is up-to-date. This goes double if you’ve recently moved or split up from a partner, as there’s a good chance this information is incorrect on at least some of your accounts. Don’t let faulty information negatively impact your score!

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