Read on to discover the various ways that you can improve your credit rating and credit score. Credit scoring aims to predict a person’s behaviour. If you are in a situation where you have no history you are unlikely to obtain credit as simply because you have no history where credit is concerned. A way to build credit is by applying for a specific credit card. Ensure that you stick within your limits and make payments on time. This way you can build your credit from scratch or even repair a chequered past.
Ask for a quotation search rather than a credit search: If you are aiming to get a precise quote, for example for online loans. Specify to the lender that you don’t want a credit search, but a quotation search. This way anything negative will not affect your credit score.
The electoral role: It is essential to be signed up to the electoral role. If you are not registered it is highly unlikely that you will get any credit.
Stability is important: If you are employed instead of self employed and own your home rather than rent it, you are more likely to be accepted. Instead of a mobile phone number, add a landline number on application forms. Being with the same employer, at the same address and with the same bank for some time, all will also help your credit score.
Carefully time applications: Make sure you don’t apply for many things all at once. For example, searches for mobile phones or car insurance can leave a mark on your file; it’s not just credit searches which do this. If you are earning you are also more likely to score better.
Cancel any unused accounts and credit cards: If you have access to too much credit, this can also be an issue. Bank accounts which are long standing are beneficial and help to boost your score, in cases such as this, leave the account open.
Never default or miss a payment: Always pay at least the minimum amount on a payment. If you miss or default on a payment, you will cause such a negative impact on your credit score, which can be affected for years to follow. Contact the lender if you are really struggling, as at the end of the day it is worth changing your repayment plan to avoid a CCJ.