If you have recently checked your credit rating only to be alarmed because it was not as good as you were expecting it to be, you may be disappointed. The reason for your poor rating could be down to a number of different things, for example, it could be because you do not have a credit history or it could be because you have made a number of credit applications recently. With that in mind, read on to discover how to improve your credit rating.
Join the electoral role – One of the easiest ways to give your credit score a boost is by joining the electoral roll. You can use this link to find out if you are already on it. If not, simply head to the UK Gov website and you will be able to join the electoral register there with ease.
Open a credit card account – This suggestion is not for everyone. If the reason your credit rating is bad is because you have too many credit cards and owe too much money, you certainly should not open another one. Nevertheless, if your reason for having a bad credit rating is because you do not have any credit cards, now is a good time to open one. The best.creditcard is a good place to start. You should use your credit card every month and then pay it off in full on the bill date. This will show that you can borrow money responsibly and this will improve your rating.
Don’t close any of your credit card accounts – While it can be tempting to close your credit card accounts whenever you pay them off, this is not a good idea. There are two reasons for this. firstly, the longer your accounts are open, the longer the average age of them becomes, and this will have a positive influence on your score. Not only this, but if you leave a card open, which is fully paid off, you will be using less of the credit that is available to you, and this will also have an impact on your score.
Pay off your debts – This goes without saying, but pay off your debts and your score will increase. Also, make sure you never miss a payment, as this will stay on your account for six years.
Don’t make applications for the sake of it – A lot of people apply for various credit cards and loans merely to see if they will be accepted. However, every time you make an application, this shows on your account and it will lower your rating.
As you can see, there are a number of different ways you can boost your credit rating. Depending on the status of your score and accounts right now, if you implement the changes that have been suggested, you should notice improvements within the next few months.