05 March 2018

7 Ways To Improve Your Credit Rating

Looking for a loan and struggling to get accepted? Your credit rating could be to blame! Thankfully there are quite a few ways to improve it so you could find it easier to make those purchases, whether it's a new car, a holiday or some essential furniture for your home, in no time at all...

  • Your credit score is based on the details within your credit reports so it's best to get a copy of these at the earliest opportunity to check that they are accurate. You may find that there are some minor errors, which can greatly affect you score, so you can ensure that these are amended quickly by contacting the relevant creditor.

  • If you've taken a mortgage or loan out with a partner in the past and you're no longer in a relationship with them, make sure that you disassociate with the person. If they have debt or a poor credit rating this could still be connected to your name and affect your rating through no fault of your own. Cut ties financially as soon as you can.

  • Pay off outstanding debt as soon as possible. Have a spring clean and sell anything you no longer want, need or that no longer fits. You could be surprised by how much you could make on websites like eBay and Shpock with minimal effort. You can also find alternative methods to raise additional money like doing a little overtime at work, sharing car journeys or cutting down on coffee shop trips and takeaway. Every little helps to reduce balances and you can watch the cash grow.

  • If you're having difficulty meeting minimum payments on your credit cards or catalogues it wont look good on your credit report. Call the creditors as soon as you can and don't avoid opening your post or responding to their calls and emails. Not only can this cause you unnecessary stress but many companies are understanding to changes in circumstances and can even help you out by reducing repayments if you ask.

  • Get professional help. If you look on the back of your statements and bills you should find the phone numbers for companies that can help you by providing financial advice.  You can also seek assistance from your local CAB or the Money Advice Service if required for free.

  • Close unused accounts. Creditors may see that you have access to credit already, even if you no longer use certain accounts, and this could reflect negatively on you. Don't just destroy your cards and paperwork, you need to call the companies and request that they close the accounts fully. 

  • Getting a credit card can actually be beneficial when looking to get more credit in the future. You can make a few small purchases on it each month and then clear the balance when it's pay day to show that you are responsible and to build good credit history.

7 Ways To Improve Your Credit Rating Money Image

If you're looking for a way to get your mitts on some money quickly and don't have time to wait for your credit rating to improve, some leaders offer loans for those with bad credit that may be worth investigating for a short term fix.

Have you got any tips to add to the list?

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