Fixing your credit rating is something that can be done easily although many people think that it is impossible. There are many things that you can do to improve your credit rating and the first thing you may need to do is making sure that you pay all your creditors well on time. You want to make sure that your credit score goes up to as high as 740 at the end of the day. This article provides a guide to improving one's credit rating.
Obtain a credit report
This is the first step as you would want to see your score and the status of your credit report. You can get a free report from a credit agency and you need to check whether the information they have is correct.
You therefore need to analyse each and every entry and you will find that at times they may have entered your information incorrectly. This will require you to report to the credit agency as well as to the creditor concerned.
Depending on the credit agency you are using, you should always aim to have a favourable score. If you want a detailed credit report, you may request it at a fee of £12, and you will also have access to all your credit agreements. Although a credit score is just a figure, it should give you an indication of whether you need to improve on your credit management or not. If you are using Experian’s credit agency, you should aim to have a credit score above 96. Equifax requires you to have a score above 450.
How to build you credit rating
You can try taking out credit cards or store cards and make sure that you pay off your credit regularly. You want to avoid high interest rates as much as possible and you do not want to miss any single payment. Although it may take some time to build your credit rating, this is one of the ways of proving to lenders that you are credit worthy. Make sure that you do not make multiple applications after you are rejected by other lenders. The trick is to apply only after you confirm with the creditor on whether you meet their qualification criteria. Managing finances and being responsible This is important when you are trying to improve your credit rating. When you borrow money, make sure that you pay back on time. Do not borrow money unnecessarily: You only need to borrow when you really need the money. Alternatively, you could try and spend less amounts just to make sure that you will be able to clear off the balances.