It will be very difficult to qualify for loans or mortgage eve to buy furniture on hire purchase. The steps you take to manage your credit rating and score and to make it favorable or healthy are known as credit repair.
There are many ways of going about it but it is best not to get there in the first place by respecting a few simple rules about money. Although there are numerous organizations that claim to be able to help consumers to repair their credit most have turned out to be scummers that end up making the situation of the consumer worse than they were.
The worst of them will ask for money to do the work and never do the work. Consumers need to use common sense because some records in one's credit file cannot simply be removed until a certain time. It takes around 6 to 7 years for bankruptcy information to be removed from one's file depending on country and or territorial regulations.
For example most of the worst companies will claim to be able to erase bankruptcy records or poor repayment records from customers files which is impossible. Customers are better of doing the work on their. Some of the suggestions proposed are outright illegal like advising customers to create a new credit history under a different identity.
Some will ask clients to report income using an employer number instead of their social insurance which again is illegal. Some do offer loans to pay off debts and thereby rebuild the damaged credit from non payment. Perhaps these are the only ones that sound genuine but watch that interest rate as you could be setting yourself for much worse problems than before.
The loans given can be used to consolidate debts and make a one time payment sometimes at a lower rate. Other non traditional players are in on the game too like car dealers who will extend credit to motorist who would not otherwise qualify for one from the bank. Some even do give second chance credit.
The good thing about using a car loan to rebuild credit is you get the car and the interest rate is usually lower than a loan like say from a bank and most other lenders. The only way to maintain a good credit rating is to pay one's bills on time, not pass one credit limit.
It is important to avoid certain types of credit as they do not give a good economic picture for example hire purchase offers from stores. It is also important to have a mix of different types of credit that is to say credit cards and loans.
It is wise not to over rely on credit cards. If possible pay all your credit card obligations in full and on time each month, if not do not miss the minimum.
