5 Ways to Boost your Credit Rating

  1. Check your credit report
  2. In order for you to boost your credit rating, the most obvious place to start would be to check your credit file first if you haven’t already done so. It will be beneficial to go through your personal details in case of any incorrect information recorded. Also, check to see if all your financial information is correctly recorded and nothing on the file which you are not aware of. It will also be worth checking to see if all payment dates are listed correctly with no errors. If you do come across any information on your file which you believe is incorrect and should be corrected, then immediately get in touch with the credit report provider to make them aware of the errors.

  3. Reduce your current debts
  4. Reducing current debts isn’t always that easy, however it is a step forward to improving your credit rating and reducing your level of debt. You can start to do this by preventing yourself from using credit cards or trying to take out more finance. It would be useful to get together all of your existing debts and establish how much interest you are paying for each or are estimated to pay and from that put together a payment plan which would clear your highest interest debt first, and paying off minimum payment on other debts. Doing this may help you clear debt easily instead of this building even more through interest.

  5. Monthly Payment Reminders
  6. One of the key areas that has a major impact on your credit rating is making your payments on time. Many people forget they have a credit card or a loan payment to make in the month and end up missing their payment date and as a result end up defaulting. Having a default each time you miss a payment or make a late payment gets recorded on your credit file, which means each time a lender accesses your credit file, they can see the number of defaults you have had, this then makes lenders more reluctant to help you any further. Therefore, to avoid a default for a missed or late payment set up reminders for when your payments are due, or then alternatively you can set up automatic payments with some banks so the payment would be automatically paid from your account.

  7. Get yourself on the electoral register
  8. Getting signed up on the electoral register may not sound like a considerable way to improve your credit rating, but it does actually make a difference. If your name is on the electoral register then more than likely lenders would take this in a positive way, as it provides them with key information of who you are and prevents any fraudulent activity from taking place.

  9. Avoid opening new credit accounts
  10. If you already have existing debt which need clearing, then opening new forms of credit accounts may not be a good idea, especially if you believe these will improve your credit rating. If you apply and get rejected, that information will then be recorded on your file which will only make things more difficult for you. However, if you are in desperate need of more credit than it may be a better idea to increase any existing credit limits rather than a whole new account.