Finances are a tricky thing, and there are so many different aspects of them that can really impact your life. There might be times when you’ve needed short term loans to see you through emergencies or you’ve had to extend your overdraft to pay a bill. However, there may be times when you feel financially excluded and you might feel at a loss for what to do. If so, keep reading and find out how you can help yourself stop feeling financially excluded for good.
What Is Financial Exclusion?
If you’ve ever applied for a loan or other financial product, but been rejected because of your credit score, this can lead to financial exclusion. It can also be when you have trouble proving your identity or you don’t have a fixed address. This can be a big problem for unhoused people as they may need to open a bank account to get a job, but they can’t open one without an address. However, they can’t get a fixed address without a job, so a vicious cycle of financial exclusion begins.
It can also be something as simple as not having a branch of your chosen bank near you and not being able to use their online systems. This means you aren’t able to use their services through no fault of your own, therefore excluding you as a customer. Financial exclusion can sometimes come into play if a bank or lender feels like they won’t profit from you because you pay everything on time, so you never have to pay interest. Banks want to make money, so if you don’t offer them that, they could possibly exclude you.
Fix Credit Issues
Although it’s easier said than done, you really want to try and improve your credit score. If it’s low, then you’ll find it nearly impossible to access any form of financial support. This is because it deems you too risky to lend to and makes it hard for banks to see you as able to repay them. Fixing your credit history will take time, so you can’t expect it to be fixed overnight. You can’t change your credit history, but you can try and build your score back up. To do this, make sure you pay everything on time and keep the amount of credit you use fairly low too.
Typically, using a lower percentage of your overall credit limit can help boost your score. Another simple thing is to make sure you’re registered on the electoral roll as this proves where you live and could help increase your score slightly. There are lots of ways you can increase your credit score, so try spending some time figuring out how you can improve yours. You’ll soon notice a difference in your financial exclusion once you have a good credit score.
Consider Other Providers
Sometimes, you may have to just try a different provider. There’s nothing wrong with looking for alternatives, and sometimes you may find that they’re even better than your first choice. For example, if you aren’t able to use online services, try searching for a bank that offers more than just digital access. Or, if there isn’t a local branch for your chosen bank, then try finding one that does have one or look at banks that offer mobile branches.
This is where they set up temporary branches at different locations regularly, allowing more people the chance to use them. You could even look at alternative banks and financial services too. Places like the Post Office actually offer different banking services, and most places will have one of these local no matter how rural they are.
Enlist Professional Help
If all else fails, it might be time to speak to the professionals. They will be able to point you in the right direction of a banking institution that would be suitable for you and even offer advice to help combat your financial exclusion if it’s caused by changeable means. Each person’s situation can be different, so there isn’t one easy answer to solve financial exclusion. But professionals will be able to look at your personal situation and advise you on how best to improve it and enable you to combat financial exclusion.
Financial exclusion isn’t simple, and it has a lot of layers to it that need solving before it can be beaten. However, there are steps you can take to improve your situation and enable you to live the life you want without barriers. Some financial exclusion barriers are harder to overcome than others, but with a bit of research and support, you may be able to climb over them successfully.