How do I improve my credit rating?
Your One Minute Response...
1Firstly, check your Credit Record regularly. This will help you understand what potential lenders are seeing about you.
2The information held by Credit Reference Agencies on your Credit Record should be correct. If you discover that it is wrong, you can ask for it to be corrected.
3If you’re eligible to vote, make sure that you are registered on the electoral roll and that your address is up to date. Not being on the electoral register may well reduce your chances of getting credit. You can check your eligibility on www.electoralcommission.org.uk/elections/voter-registration.
4Consider approaching a credit card company who specialises in helping people with a poor credit rating. Managed well, they can really help you to improve your credit score.
Improving Your Credit Score
When you get your Credit Record, read through it and the notes supplied to make sure the information is accurate and up-to-date. If you think anything in your credit history is wrong, contact the credit agency to alert them to the fact that the entry is incorrect. They may then require you to contact the original lender who supplied the information, explain the problem and ask them to remove or change the entry. If it really is wrong, they are required by law to change or remove it.
If you’ve signed up for one of the Internet-based services like Credit Expert, they can help you amend, change or delete wrong information on your Credit Report.
Here are some other steps that you can take to improve your Credit Score:
- Register on the electoral roll - register with your local council, it only takes a few minutes and helps enormously.
- Pay bills on time. This will help improve your credit history and improve your Credit Score.
- If you have credit limits, don’t exceed them. This applies to credit cards, bank overdrafts or store cards, catalogues, mobile phones and utility bills.
- Don’t apply for cards one after the other – If a lender sees that you have applied for a number of credit products and have a number of searches at the Credit Agencies over a short period of time, they may decide that you’re desperate for cash and not credit worthy. Leave at least 3-6 months between different applications rather than applying for another card immediately if you’ve been turned down.
- Build your credit history – Some credit cards can help improve your credit score over time because using them shows that you can manage credit successfully.
Follow these steps to build a strong credit history and credit record and when you check your credit reference file in the future you should have an improved Credit Score!