If you can’t get credit don’t panic, turn tables

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By Leah Karimi

Many loan applicants are usually denied credit because their rating is poor.

But if you prove that you are in control of your finances, chances of getting a loan will be greatly increased.

A good place to start is your credit report, which lists what you've borrowed and how well you're paying. The report gives you a snapshot of your credit status, loans you've had in the last few years and how you have managed then.

Lenders check it when they decide whether to make an offer and at what terms — such as interest rates.

It is crucial that it's up to date and accurately reflects your circumstances. It pays to manage your money well because a good credit history makes you more likely to get a better deal.

To forestall a personal credit crisis, here is a checklist of what you need to do:

• Don't miss any payments. Pay your bills and make repayments on credit cards, loans and your mortgage on time.

• Do a credit rating for yourself.

Areas that you should look at carefully are late payments, tax arrears, and loan or credit card defaults.

You should check if you have stretched your borrowing capacity – which should not be two thirds of your monthly net income.

• Get help.

You may want to contact a personal finance advisor if you can’t solve your credit problems on your own or if you need help.These professionals can negotiate on your behalf for repayment plans that are acceptable to your creditors.

They can also help you set up a budget.

• Review your spending Set yourself a budget and stick to it.

• Don't make your credit rating worse.

Don't try to borrow your way out of trouble and apply for loans and credit cards to tide you over.

You'll soon rack up debts you can't manage.