7 Ways To Improve Your Credit Rating

Improve Your Credit Tip 1. On The Record

How can I improve my credit? This is one of the first questions you might ask your self if you’d like to buy
a property in the future or if you’ve already applied and been knocked back.

If your credit checks aren’t coming up with all bells and whistles with banks and credit card companies,
you need to establish why. Your credit reference file should reveal all, it records all your borrowing
behaviour past and present. Your file can be ordered online for a small fee from the websites of the three
main credit reference agencies, which are Experian (www.experian.co.uk), Equifax (www.equifax.co.uk)
and Call Credit (www.callcredit.co.uk). There is also one main website where you can obtain a triple
credit report for under £20 which gives the information from all three credit report companies in one so
you can quickly and easily cross reference your records and check for any discrepancies or
inconstancies. www.CheckMyFile.com

It is important that all your credit reports have the same information for instance don’t have your name as
Mrs J N Smith and Miss J Smith at the other. This lowers your credit score.

 

Improve Your Credit Tip 2. Decide To Take Action

Do you think it’s really worth going through all that trouble to improve your credit score?
Moneysupermarket.com, the price comparison website, offers a “smart search” service. Go ahead and try
it here. Potential borrowers are able to search for the best deals available according to their
creditworthiness. Those with a poor credit history can expect to pay rates of at least 12 per cent for an
unsecured personal loan — more than double the price of the best deals. So yes I’d say it’s worth it. So
take action an write to the credit reference agency if they have any of your details down wrong and ask
them to amend them.

Improve Your Credit Tip 3. Beware Of Credit Repair

Credit repair companies advertise a service that purports to be able to clean up your credit file. But these
companies sometimes offer shoddy advice and charge a fee for information that can be obtained for a
modest sum from credit reference agencies and debt counselling services.

Improve Your Credit Tip 4. Borrow To Build Credit

If you are invisible to credit agencies, your credit record will not be spotless. With no history of credit there
is no way of telling whether you are credit worthy or not. It could be worth taking out a credit card. Using
the card wisely, without incurring charges or penalties, will help you to rebuild your creditworthiness. But
you must be disciplined or it will have the opposite affect!

Improve Your Credit Tip 5. Store Cards

In order to improve your credit as we’ve mentioned above, you should have some borrowings. In most
situations store cards are a no no. Interest rates can be as high as 30 per cent. But, again, if you pay off
the balance each month, simply owning a store card and using it will help to rebuild your credit rating.

Improve Your Credit Tip 6. On A Roll

 

Lenders and credit reference agencies want to know where you live, so make sure that you register your
details on the electoral roll. Contact your local council to get yourself registered.

Improve Your Credit Tip 7. Mobile Credit

When you take out a 12-24month contract with a mobile phone company, you are signing up to a
consumer credit contract. Keep up with the monthly payments a