How Can I Improve My Credit Rating?

by Rebecca Hall on 7 Aug, 2012

Improving your credit rating can be a daunting task, but it doesn’t need to be. This article will provide a number of helpful hints and tips that make the process of applying for credit much easier and effective.

1. Ensure all applications are completed correctly

It may sound obvious, but ensuring that applications are completed correctly and that all information is accurate will go a long way to increasing your chances of an application being accepted. Missing or inaccurate information can radically decrease your chances of a successful application.

An incorrect or mistaken statement of salary can make all the difference to the chance of your application be accepted. It is vital to check and recheck all applications for factual inaccuracies and ensure all information is up to date and precise.

2. Check your credit reference file

Though the ratings attributed to you by the three main credit reference agencies in the UK are not the only factor in deciding your credit rating for an application, they are important and give you a good idea of where you stand financially.

It is relatively simple to obtain your credit reference file and a written request to one of the credit reference agencies (namely Equifax, Callcredit or Experian) will allow you to do so. Though this usually costs around £2, it enables you to view the information they have on file and provides a useful insight into how lenders will view your application.

3. Prove that you are a responsible borrower

Lenders are unlikely to take risks with irresponsible borrowers. Consequently, it is important to show creditors that you are financially responsible and that you are likely to pay back the money borrowed when you are looking to apply for credit card.

It may take time to build creditors’ trust in your responsibility, but in the long run you will become a much more attractive prospect when applying to borrow.

4. Register on the electoral roll

Companies intending to lend will always look for stable investments. This is due to the way in which stability is often associated with financial responsibility. Efforts to ensure you are registered on the electoral roll, have a landline at your residence and have a long-term history with a bank will all present an image of stability and financial responsibility.

5. Explore your options and do your research

There are many avenues you can take on the path to a better credit rating, such as credit cards that aim to help those with bad credit ratings or credit advice companies, and it is important to explore such options.

Remember to do your research and explore all of these options carefully, researching those that appear to benefit those with a poor credit rating. There is no harm in contacting such companies to discuss your options. Beginning to repair a poor credit rating can take time and effort, but will drastically increase the financial options available to you when applying for a bad credit credit card.

About the Author

Rebecca Hall

Rebecca Hall worked as an independent mortgage adviser for 10 years before turning to financial journalism full time. She has strong links to the CAB advising families on mortgage refinancing.