If you have a bad credit history you might find it very difficult to borrow money, which may mean that you will not get accepted for a mortgage or other forms of credit.
One Advice have devised this How To Guide to help you offer you free tips on how to improve your credit rating. If you are finding your debts a struggle then it is important that you seek expert help, call us free today on 0800 019 5870.
Sadly there is no easy way to improve your credit rating, and if it is poor it could take years to rebuild. But here are some simple tips for you to try:
1: Cancel Unused Credit. Even if your credit has not been used it can be seen as a problem if you have too much access to it. So cancel old cards and clear off old debts.
2: Make Payments on Time. This may sound easy but if you are struggling to pay back your debts over multiple cards then you might find that you are missing payments due to not having enough funds left at the end of the month, or you are just forgetting that you were supposed to pay it.
See if you can set up a direct debit on your bills, and even if you set it for just the minimum repayment amount then remember that you can still top this up with any left over cash.
3: Register to be on the Electoral Roll. If you are not on the electoral roll then you will find it very hard to get credit at all. Your local council will be able to give you more information about whether you are registered and how to apply.
4: Keep Credit Searches to a Minimum. Looking at your credit file from time to time is a great way to keep your finances in check. But it will be noted when you search your file and also when you apply for credit, so try and space things like credit card applications out over time.
Top Tip: Ask your lender to perform a ‘Quotation Search’ which means the enquiry will not have a negative impact on your record.
5: Don’t Keep Reapplying for Credit if you have been Turned Down! Mentioned in tip number 4 but it is worth repeating; it is important that you don’t make a many applications for credit over a short period of time whether this is for credit cards or loans. Each lender will check your credit file to rate your credit worthiness, and the more applications that appear on your credit file then the less chance you have of being accepted.
If you find that you are struggling with debt and you cannot get accepted for credit, it is worth trying to make your current debts more affordable to you. One Advice can offer a number of leading debt solutions include debt management plans and IVAs which are available to help you regain control of your finances. Call the One Advice team free on 0800 019 5870