  How to Improve your credit rating to borrow money?I've got an average credit rating at the moment but I'd like to make it better. What steps can I take to improve my credit rating?Your credit rating is a number between 1 and 999 that rates your ability to manage and repay credit. It is used by companies who are lending you money, or letting you have something on credit and every mobile phone contract, loan, mortgage, credit card and finance deal that you take out will look at your credit rating as part of their decision to lend you the money. Many lenders will offer customers with the highest credit rating their best deals, charging a lower rate of interest as they deem them the most likely to pay back the money they owe on time. Therefore it's in everyone's interests to have the best credit rating they possibly can. The first thing to do is to work out how your credit rating is looking at the moment. All three of the main agencies offer thirty day free trials so sign up and find out your score. You'll also be able to see from your report if you have any missed payments, or late payments flagged, or if you still owe any money to companies you thought you had paid off. It's important to look through these payments and work out if they are all accurate. If they are not you can appeal them. Your first point of call is the company who are claiming you made a late payment. If you still disagree you can launch an appeal with the credit agencies. If you can get these removed then your credit score will be approved. You should also make sure your name is on the electoral roll at the address you live at. If not print out the online forms on the government website and send them off as soon as possible. One of the largest factors over our credit rating is the amount of credit we have borrowed. If you have borrowed too much, or have never borrowed money at all, you are likely to be given a lower score. If you can pay some off, then do so as this will increase your score as you'll be seen to be lower risk. If you've never borrowed money before you need to prove that you can borrow and repay money. Consider taking out a basic credit card, whatever the interest rate and using it to buy petrol and your weekly shop each month. Pay it off in full at the end of the month and you'll not only pay no interest but you'll prove you can borrow money and pay it off. |
