The days of easy credit are long gone – if they ever existed. Now, you need a really good credit rating to be in with a chance of getting the best deals. These money saving tips could help you.
- Understand how lenders make decisions. They calculate your credit rating (or score) by giving a value to pieces of information from your application and your credit report – the history of your credit cards, loans and mortgages plus your repayment record and other details that help them to decide whether you can afford to borrow and will make repayments reliably. The total is your rating.
- Check that all the information on your credit report is up to date and accurately reflects your circumstances – even a simple error could depress your score. See your free Experian credit report with a 30-day trial of CreditExpert and learn what lenders see about you.
- Set the record straight. Challenge any entries you disagree with – for example, accounts listed as active when you know you’ve closed them – by contacting the relevant lender and asking for a correction.
- Make repayments on time, every time. Missed payments stay on your credit report for at least three years and will damage your rating. If you’re in trouble, talk to your lenders and ask to reschedule your debt.
- Close unused credit accounts. Lenders tot up the amount you could borrow, when they calculate your credit rating, so get rid of those just-in-case cards.
By following our expert money saving tips you can protect your finances today.
Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.
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[...] 1 votes vote Top tips: how to improve your credit rating The days of easy credit are long gone – if they ever existed. Now, you need a really good credit [...]
Looks like good tips for making some more credits. Thanks for the post.
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Very interesting and amusing subject. I read with great pleasure.
As you have been talking about how impotant credit history is when successfully applying for a credit card, I thought you may want to hear about an alternative to a credit card that still means you gain many of the same benefits. I work on behalf of Escape Prepaid MasterCard which brings financial inclusion with no bank account needed plus, unlike many prepaid cards, is available to everyone. So no matter whether a person has a non-existant credit history or a bad one, they are still able to get an Escape Card. It’s the highest value pay as you go card on the market, as well as being one of the cheapest.
Thank you! You often write very interesting articles.
I agree you have to stay on top of your credit score because if you let it slide well you can find it very difficult to get credit in the future. Keep up regular payments and always check your credit report to ensure that everything is as it should be.