How To Improve Your Credit Rating

How To Improve Your Credit Rating

Here are some actions you can take to improve your credit rating.

Valid Name And Address Details

Make sure your credit file contains your most recent and current address details, and also ensure that your name is spelt correctly. Check for any name changes such as maiden name, married name etc.

Electoral Roll

Make sure that your current address details are registered on the electoral roll and that the details are correct.

Check For Errors

Go through your credit file to ensure that there are no errors contained in it such as out dated loan agreements, unverified employment details or name and address inaccuracies.

Credit History

Take responsibility for ensuring you have no outstanding credit agreements that are no longer in use. If there are, contact the lenders and make sure the agreements are close down. Check that with your credit reference agency to ensure the actions have taken place.

Joint Finance

If you have taken out a credit agreement with someone in the past who has reneged on their payments, this may affect your credit rating. It is your responsibility to make sure that credit reference agencies are aware that you are no longer in this relationship and that any bad credit rating is not reflected on your current score.

Maintain Payments

If you are currently involved in any credit arrangements, make sure that your payments are made at the required time and at the amount agreed with your lender. This demonstrates you take responsibility for fulfilling it your contract with the credit provider and that you are more likely to repeat this if you take out credit again in the future.

Pay Back What You Owe

If you are guilty of running up large credit card bills, tried to start to change your habits and make sure your credit balance is cleared on a regular basis – preferably monthly. One way of achieving this is to spend small amounts on your credit card and then clear the balance so that you do not incur substantial interest charges.

You can also replace your credit card with a prepaid card that will help you avoid overspending. Find out about the advantages of a prepaid credit card.

Don’t Be Greedy

 

Try to apply for the credit you are likely to get because, if you apply for credit that is significantly higher than your income or means, it will demonstrate to lenders that you are over-eager and probably incapable of making the payments on a regular basis.

Don’t Make Multiple Applications

Credit providers view multiple applications as an act of desperation and are more likely to refuse your credit. Be patient and the only apply for credit of that you need – whether it be a loan or a mobile phone contract.

Check Your Credit Rating Regularly

It is very easy to run up a bad credit score – by irresponsible spending that has significant or substantial interest charges; or not making the payments on loans that you have agreed to; etc.

It is not difficult to restore a good credit rating if you have a poor one but it takes time and discipline. You can achieve this through responsible financial management.

Take responsibility for checking your credit rating regularly and ensuring that you manage all finances in a way that will endear you to potential lenders.