How to Get a Better Credit Rating

How to get a better credit rating fast

Your credit rating is the key to whether or not you are successful in your loan, credit card and mortgage applications. To improve your credit rating and therefore, your ability to get the credit deal you need, follow these simple steps:

  1. Love your credit report:Your credit report is the key to your credit rating, because lenders use it when they decide whether to make you an offer – so it’s crucial that it is up to date and accurately reflects your circumstances. Check yours regularly to ensure it is accurate and you are not being refused as a result of out-of-date information. Get your FREE Credit Report now - just click on the links.
  2. Set things straight: Make sure there is nothing on your report that is misleading, and challenge any entries you think are incorrect or need clarification - sometimes something that has a reasonable explanation can account for a blot on your report e.g. you once missed some repayments because of illness but have never had a problem before or since. If this is the case, a note can be added to your report for lenders to take into account.
  3. Protect yourself from identity fraud: Identity fraud is the fastest growing crime in the country, and by checking your credit report regularly, you can protect yourself against it. For example, if you notice something surprising on your credit report, such as a loan application you did not make, you can alert the authorities and stop the fraud attempt before it goes any further.
  4. Be independent: Your credit report also takes into account the financial history of anyone with whom you share a joint financial agreement, and if they have a poor credit history, it could affect your borrowing power. If you are now financially independent, or no longer share an account, mortgage or credit card, make sure your credit report is updated accordingly.
  5. Watch your step: Make sure, when you are shopping around for the best credit deal, that you are only signing up for a quotation and are not making a formal application. Lenders may think an abnormal number of credit application searches indicates that you are desperate for money, over-extended or even that identity fraud is taking place. If companies have registered credit application searches when you only wanted information, or have searched your report more than once in response to a single application, ask them to remove the incorrect or extra searches.
  6. Don’t lie: Make sure you tell the truth on an application form. Lenders will almost always find out, and any inaccuracies on your application will go against you and could cause difficulties for you when making any future credit applications.
  7. Don’t let debts stack up: If you can, pay your existing credit card bills and loan repayments on time because it shows potential lenders that you are in control and more likely to meet future repayments.
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.